Fannie Mae-No Politics (FNMA)

[Achilles deFlandres]

I will try to answer with three ideas:

1. The Government motivation for the conservatorship was is to grow the bureaucracy and to completely control F&F business. The plan moving forward was to form the FMIC by combining F&F. Legislation on that stalled for reasons I don't know. The new building and CSP were first steps toward that but I think they were blinsided when the DTA couldn't be hidden anymore.

All of this was discussed in court when Hamish Hume stated that the conservatorship left the shareholders with the least number (apparently zero) of rights over their property. Ha added that in receivership, the shareholders have unambiguous rights delineated by statute and not really open to interpretation.

Look at all that has happened:

For a long time the courts maintained that the shareholders (owners) had no standing to bring suit. Result? Full "government" control.

For a long time, Watt and then Calabria (possibly DeMarco; I don't know if acting received the same superhero status) were unassailable. He had his own revenue stream and could not be removed. DeMarco was acting for a long time, too long as some of the lawsuits pointed out. For (was it) 13yrs? The FHFA officially by statute could do anything as Lamberth pointed out in the Perry Injunction 2014. Looks like control to me.

The money they took was stated in discovery emails to prevent the GSEs from exiting the conservatorship. Looks like control to me.

$100B is pocket change to the government who appropriates and spends both willy-nilly for the most part. It has been enough to maintain control of the GSEs through the power of the purse-strings.

You really should watch that video with an open mind.





2.