Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

When if ever to end the 12.75 year Conservatorship is at the sole discretion of the Conservator, since the Congress grants so much latitude in decision making by these 4th branch of government decision makers, I don't know if we could get a Judge to end it given the even broader power the SCOTUS gave it the other day!

From what I understand there are only two ways to provide infusions of cash into corporations either debt or equity. Preferred shares are considered equity aren't they?

According to the SCOTUS ruling, under HERA, the FHFA could LEGALLY sell ALL THE ASSETS OF THE GSES TO THE UST FOR $1. Why? Simply because it is in the interests of the FHFA or the public it serves. The shareholders could file a Takings Claim if that happens, same thing with the bogus nws.

The gses are still in conservatorship because their conservator agreed to give away in CASH ALL OF THEIR NET INCOMING INTO PERPETUITY WITH THE 3RD Amendment. The 4th isn't much better.

Clearly the government never intended to act as a Conservator but focused purely instead on the Incidental powers in HERA that allowed it to do WHATEVER IS IN THE FHFA'S OR THE PUBLIC IT SERVES BEST INTERESTS.

I think the shareholders have a great case for the Takings Claim and if we get a Judge in the 5th Circuit that has figured this out, then we could see a recovery in the Billions on the SOP claim!

It will be interesting going forward to see if this administration continues to demand the shakedown of the gses or if they do the right thing and work towards the goal of building capital in a 1st Loss Position.

MC in his exit interview on Kudlow thinks the new administration will continue the shakedown.