Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

The Castration Clause: "During Conservatorships the FHFA can act in it's own best interests and or the public it serves.". The SCOTUS invoked this in Collins, didn't J. Lamberth basically say in 2014 or 2015, the FHFA's powers are 'yuge' under HERA, the FHFA can basically do what it wants, and Shareholders only recourse is to write a letter to their Congressional Representatives for Justice?

Yesterday, Professor Anjan Thakor sat right next to J. Lamberth on the Witness Stand and answered questions from the Government Attorneys. One of his answers was: the NWS was NOT in the best interests of the FHFA nor in the best interests of the public it serves. The paramount Interest of the US Government (and the public it serves) is the Stability of the US Secondary Mortgage Market.

Professor Thakor said that the NWS or 3rd Amendment, by taking all the GSES profits into perpetuity is not in the Public's Best Interest BECAUSE it makes the GSES never able to build Capitol and all financial intermediaries need Capitol.

It was later in the afternoon when he said it. J. Lamberth looked like he was paying attention but perhaps he was thinking about his weekend plans instead and didn't hear him !

We'll see shortly whether or not the Jurors understand this.