Fanniegate is a case of breach of multiple statutory provisions and financial concepts, and the judiciary and corrupt litigants with their social media "Goofies", providing the alibi with misinterpretations and coverups.
It has led to a case of "restructuring" with proposals of resolution that look more like kids that, instead of trading with baseball cards, exchange stocks. No skills are necessary, this is why Bradford is redoubling his efforts using LuLeVan and The Man With No Name.
They still don't get what the rehabilitation of a financial company means. Even judge Willett and Justice Alito coincided in stressing this fact of rehabilitation of FnF as stated in the law (any action authorized by the FHFA-C's Rehab power. "May" isn't an authorization to be excused from complying with "Rehab", once the capital is built -Retained Earnings-, but related to other activities, conservatorship-related or not, like the preps of a Housing Finance System revamp: CSS, CSP, UMBS, etc), but the Goofies have "gold fever" and only see an opportunity to make up for their losses getting common stocks trading at rock bottom prices and discounting the fraud all across the board.
There are multiple subcommittees that tackle Housing matters, both inside the Housing and Banking committee and the Financial Services committee, in charge of overseeing the operations of FnF and their conservatorships, but I've never heard from a politician any complaint about the breach of statutory provisions or the fact that the Core Capital was deep in the red in their quarterly S.E.C. filings since early Conservatorship, but the opposite. For instance, they've been openly delighted about how profitable was being a conservatorship for the taxpayer (Senator Brown). With an adjusted $-216 billion in their Retained Earnings accounts, FnF have not been rehabilitated.
The idea that they couldn't have overseen the FHFA, since Congress hasn't received a FHFA Report to Congress with the ERCF tables yet, is ridiculous. This is why the same Capital Rule effective February 16, 2021, directed FnF to keep the ERCF tables secret till January 1, 2022, and why rep. French Hill and rep. McHenry scheduled the 2023 testimony of the FHFA director one week before the expected release of the 2022 FHFA Report to Congress that would show the ERCF tables for the first time.
Without the ERCF tables, they can make up the numbers. Rep. Blaine in the hearing: "$100B vs $300B". Sandra Thompson: "You got it!". When it's "$-90B vs $207B". A $297B capital shortfall. He claims that $300B is the capital requirement instead of capital shortfall. And $100B is their Net Worth, $103B to be precise. $-90B is their Core Capital.
This is why the FHEFSSA is concealed. So you don't know that the Undercapitalized threshold is met when the core capital is greater than the minimum (Leverage) capital requirement (The definitions of each Capital Classifications, that the Mnuchin's UST recommended Congress to repeal, in the 2019 Housing Reform plan)
Rep.Blaine:"The threshold for exit is $300B". No, $300B is the capital shortfall, the threshold is $207B, the Minimum Leverage Capital requirement (mandatory release in the prior FHEFSSA, struck by HERA), as of end of March 2023. And by the way, the adjusted figures are: "$-193B Core Capital vs $207B", adjusted for the $103B gifted SPS that carry an offset that reduces the Retained Earnings accounts (core capital). A $400 capital shortfall over Min. Leverage Capital requirement.
So, Rep. Blaine didn't want to download the earnings reports with the ERCF tables, so he can now claim that he didn't have the 2022 FHFA Report to Congress in time for the hearing.
Don't tell me that it's the funding structure of the FHFA the cause of the problem of lack of oversight.
I see collusion Congress-FHFA.
A clear case of misrepresentation of their financial condition to fish in troubled waters. Even Financial Statement fraud (gifted SPS hidden on the Balance Sheet in plain sight), is being concealed by both parties shamelessly colluding in this scandal. Let alone concealing the laws FHEFSSA and the Charter Act with the cheap UST backup of FnF and a Fee Limitation of United States. These people truly think that everything inside suddently vanishes.
The penalty on the corrupt litigants and their crew peddling the Government theft story, is of supreme importance. $4.8 billion, the sum requested by the Equity holders in Punitive damages. The same amount from the DOJ ($1.94 per $50 par value JPS and common stock)
BOTTOM LINE
The reality is that the FHFA director has complied with all the statutory provisions so perfectly, that even he has made use of its Incidental Power (secondary power) as conservator to that end: The Separate Account plan.
