Fannie Mae-No Politics (FNMA)

[LuLeVan]

It is not helpful to use inflated numbers, also in the letters to politicians. Treasury paid $191 billion to FnF, and this sum at least must be subtracted from the $300+ billion paid by FnF. This is true whether the government made a $191 billion loan - as was the case with the TBTF banks - or whether the government took a stake in the GSEs via SPS preferred stock.

Cancellation of the NWS would not make the government's $191 billion claim go away. Also, the SPS's regular 10% dividends are legitimate claims of the government under HERA. A serious violation of the law and overreach was to increase the SPS dividend to the total Net Worth of FnF from 2012. However, cancellation of the NWS would only make this overpayment refundable - unless HERA is challenged as well.

There was a good reason why the Collins plaintiffs before SCOTUS had only asked for about $29 billion in compensation (besides cancellation of the SPS). Had the Collins plaintiffs asked for $300 billion, they would have made fools of themselves. So would anyone else here citing that $300 billion as a legitimate claim.

Using another poster's claim that Treasury using the NWS has taken $300billion from FnF that it will have to return to FnF if the NWS is unwound...