Fannie Mae-No Politics (FNMA)

[FOFreddie]

Rodney5,

I understand your concern and in the totality of all the shenanigans you have the right reaction but contractually there was consideration given and received and approved by the Board of Director's. All though there was no cash given there was consideration given because the UST agreed to provide up to $ 200bn additional funding at the time to calm the MBS markets. I believe this was increased to $ 300 bn later since there was a concern in the MBS markets that $ 200bn was not enough at the time. Personally I do not think this part of the SPS can be challenged but the increase of the Liquidation Preference as part of the 3rd Amendment can. Let the UST have $ 2 bn and NO MORE.

Personally I think your points about the Charter Act are good but I dont know how to assess the Statute of Limitations practice in the COFC that Brydon raised. Right now I think the best use of our focus is on the Mike Kelly fact pattern about what the NEC and UST did months before Conservatorship and the separation of powers Constitutional Remedies.

I am waiting to see what happens in the Mike Kelly litigation - right now it does not look good but perhaps we will be surprised. Our best hope is with the 5th Circuit but we still need to have SCOTUS uphold anything coming out of the 5th Circuit.

This is probably not what you want to hear but I think this is the reality and potentially overly optimistic. Familymang and Kthomp most likely dont agree with anything I am stating.