Fannie Mae-No Politics (FNMA)

[Rodney5]

The problem is not that the Treasury Swept the Net Worth of the companies. THE PROBLEM: The FHFA appointed CEOs failed by sending the NWS payments to the Treasury without the Pay Down of the Liquidation Preference applied.


WRITTEN AS CLEAR A DAY,

HERA Page 2732

These expert lawyers never mentioned the Charter Act!

The Senior Preferred Stock Purchase Agreement is not a law. The SPSPA is an illegal contract, The Charter Act is the Law.

A) issuance of additional shares or obligations

(B) reduce the financial obligations

Pay Down of the Treasury’s Liquidation Preference Permitted by HERA Page 2732

In essence allows the trustees of Fannie and Freddie to go to the market at any time to raise new capital, including new capital with lower dividend coupons, to buy back the Treasury’s senior preferred. Any loyal conservator of Fannie and Freddie would take advantage of this refinancing option to end the bailout arrangement, by paying off the senior preferred in full.

The FHFA appointed CEOs failed by sending the NWS payments to the Treasury without the terms of the Pay Down of the Liquidation Preference applied.

HOUSING AND ECONOMIC RECOVERY ACT OF 2008

Quote: “Page 2732

EXCEPTION.—Notwithstanding paragraph (1), the Director may permit a regulated entity, to the extent appropriate or applicable, to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition— ‘‘(A) is made in connection with the issuance of additional shares or obligations of the regulated entity in at least an equivalent amount; and ‘‘(B) will reduce the financial obligations of the regulated entity or otherwise improve the financial condition of the entity.’’.


NOTE: REPURCHASE, REDEEM, RETIRE...

WILL REDUCE THE FINANCIAL OBLIGATIONS OF THE REGULATED ENTITY.

Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf