Guido, that’s a great question, “How is sending their equity to Treasury saving the corporations?”
Ignoring the facts that the NWS could not possibly have any rehabilitative effect.
KT wrote, “The Supreme Court said in its Collins opinion that FHFA could "rehabilitate" FnF in a way that advances the public interest, while ignoring the facts that the NWS could not possibly have any rehabilitative effect and that one of the principal duties of the FHFA Director is to preserve and conserve assets, which takes precedence over an incidental powers clause.”
Tim did the numbers, “Fannie is allowed to retain its earnings until it fully meets its applicable risk-based capital requirement (it’s currently short by $247.8 billion), but those increased retained earnings are matched by a dollar-for-dollar increase in Treasury’s liquidation preference.”
These expert lawyers never mention the Charter Act!
Barron said it best. Introduce this into the courtroom.
Quote: “ I posit that the variable liquidation preference outlined in the SPSPA and all amendments are an illegal commitment fee/charge attached to the purchase of the senior preferred shares. Prohibited by the Charter Act. The warrants are also a fee in consideration for access to the commitment. Prohibited by the Charter Act.
I posit that the senior preferred shares with their variable liquidation preference as outlined in the SPSPA constitute a new product for the purpose of the secondary mortgage market outlined in the charter act at sec 1719.
I posit that under the safety and soundness act as modified by HERA, the sale of SPS with a variable liquidation preference to Treasury under authority of sec 1719(g) of the Charter Act required notice in the federal register, opportunity for public comment, and official rule making by the plain language of the safety and soundness act.
I posit that the above statutory violations necessarily violate the warranties on behalf of the FHFA-C contained in the SPSPA.
301 Billion to be returned to the corporation. LP and warrants canceled. Future of 191 billion of taxpayer debt illegally given to corps to be determined.” End of Quote
