Fannie Mae-No Politics (FNMA)

[NeoSunTzu]

You are completely mistaken, while FHFA is the conservator, with the director given statutory power over that conservatorship, there were / are financial agreements in place with UST and legal proceedings in progress in the courts that he, nor ANY other director, had or have the power to unilaterally waive. The point is actually moot, because as far as we know he never attempted it, but I assure you the statutory power for ANY position and ANY agency only goes as far as the financial, economic, and legal context within which it operates allows. You do not release an insolvent entity from conservatorship with lawsuits in progress - EVER. UST would not have allowed it and it just plain would not have made sense to do.

What would have made sense was to create a sensible captial rule, and immediately push back on the letter agreements with treasury, allow the companies to retain all earnings going forward (but UST would have fought that in court - which again nullifies your misconception that Calabria truly had the power to release them from conservatorship - UST believes the letter agreements, NWS, SPSPA - all that nonsense are legally binding). Statutory power cannot be treated as a single line item that nullifies all other practical aspects as to what the agency is charged to do before exercising that power, or what other liabilities had to be discharged before acting on that power.