Fannie Mae-No Politics (FNMA)

[Wise Man]

ATTENTION. "Ano" insists that the Incidental Power of the conservator is a self-dealing provision.
Just like the Supreme Court. This is a betrayal to the shareholders, as it aims at paving the way to making the JPS holders whole, both in the JPS par value and regarding back dividends.
This is why he later outlines the court cases that benefit from this misinterpretation of the law, with their Implied-In-Fact Contract claim, also known as breach of Fiduciary Duties.

The conservator's Incidental Power doesn't authorize self-dealing in the FHFA. Self-dealing means to act for the benefit of itself. But the provision states that it's required to be "authorized by this section" and depleting Capital contravenes the conservator's power of Capital restoration (put FnF in a sound condition)
Soundness is a financial concept. Finance is a complicated subject that needs deep knowledge. Finance isn't taught on the streets.

Secondly, the law doesn't authorize the FHFA to place FnF in conservatorship whenever it wants. It's regulated in the law, with a series of requirements.
For the same reason, the law doesn't authorize the FHFA director "who can do whatever she wants".
You are misleading the shareholders.