I think another more glaring issue preventing recap and release is that the federal government decision makers are unsure of whether or not:
1. Did the federal government take the Plaintiff Shareholders property when it implemented the Net Worth Swipe? (Could be decided as soon as tomorrow with a "HaHa Shareholders YOU HAVE NO PROPERTY RIGHTS DURING THE CONSERVATORSHIPS AND UNCLE SUGGY CAN TAKE AS LONG AS HE WANTS TO EXIT THE CONSERVATORSHIPS GIVEN THE FHFA'S ABILITY TO DO WHATEVER IS IN ITS BEST INTERESTS - Taking Clause Petition for a Writ of Certerrori DENIED!)
2. Did the FHFA and Freddie Mac and Fannie Mae breach the implied contract to shareholders during the CONservatorships and what if any damages will be assessed by the court?
3. What remedy if any will the courts impose on the SOP issue of the insulated FHFA Director, Mel "chase me some skirt around the office" Watt?
4. Is the FHFA double insulated from the US Congress by having its federal budget bypass the Congressional Appropriations Oversight Process? What remedy if any is available to parties challenging past FHFA decisions like the NWS?
5. Did the FHFA and the UST decide a Major Question of Economic and Political Importance by Nationalizing the 2 linchpins of the US Secondary Mortgage Market? What remedy if any is available?
6. The issues in the Kelley lawsuit need to be resolved.
As TH pointed out, unfortunately due to the $300B transfer of CASH to the US Treasury from the GSES balance sheets from 2012 to 2019 (in return for NOTHING!), plus MC'S crazy 4.5% Tier 1 Capital Requirement, an organic recap is years away.
Unless the federal government is willing to totally reverse the NWS and concede what they did was wrong, I just don't see the Shareholders letting the federal government overreach here off the hook.
And so far the federal government has given ZERO suggestions of a Compromise. And even if they did, how would you get the Shareholders on board?
