Fannie Mae-No Politics (FNMA)

[Wise Man]

*FANNIEGATE SUMMARY* Don't miss the response to representative Ogles posted yesterday, that serves as a summary of this conspiracy to rip off the shareholders of congressionally chartered private corporations.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=172963035
The UST can make a profit of $312 billion with the Takings of our stocks and resale, after a refund of the amount due to FnF, $152B, which can be reduced to $150B, caused by the Asset-Liability matching principle.
Not bad knowing that the UST is prohibited to make profits using FnF, which was broken with the legislative fees: 10bps g-fee (TCCA fees) and 4.2bps on new acquisitions for the Affordable Housing Funds managed by the UST and HUD.

The ultimate amount of Punitive damages depends on whether the DOJ bails out its counterparty, the peddlers of the Government theft story in formal documents: Law firms, plaintiffs, Pagliara, Howard, Rosner, Ackman, Moelis, ACG Analytics, financial analysts, etc., accused of stock price manipulation and conspiracy, for the fact that they agreed with the payment of 10% dividend during the transition period to build capital (financial rehabilitation or sound condition), while FnF showed Accumulated Deficit Retained Earnings accounts (a dividend is a distribution of earnings. Not only negative balance, but also Payout ratio = 0% in the Table 8) and after the coverup of the Restriction on Capital Distributions. Etc.

It also depends on whether there is a Takings or not, as the common shareholders are excluded from the second round of $4.9 billion in Punitive Damages for the Deferred Income accounting (the upfront g-fee is, in truth, a Delivery Fee) if there isn't a Takings.
The first round of $4.9B serves as a settlement of the 8 Securities Law violations in conservatorship (the SPS are issued so that the stocks are dated, not "increased". Goal: skip the December 2009 deadline on purchases by UST for the infinite rate authorization subsection (g), the grounds of the Separate Account plan, as subsection (c) prevails: redeemable obligations SPS, that can be repurchased on the "open market", that is, in the separate account)

I would ban the DOJ from bailing out its counterparty in the third round of $4.9 billion, forcing it to go after the masterminds and sponsors instead, which could go as far as 1989 for those involved in the rip-off of RTC and the Funding Corp scheme, where, likely, the UST lost $48.8 billion in total ($30B invested in RefCorp obligations, plus $18.8B invested directly in RTC, required by law) and then, the same officials and investors in RTC's Public-Private Partnerships are using FnF to make up for their losses; Those that authorized the purchase of PLMBS in FnF, which are banned in the Charter's Credit Enhancement clause; Former Fannie Mae CFO Howard for the stock buybacks to boost his EPS target bonus, an investment unauthorized in the Charter Act that depleted Equity and core capital, both lacking when the crisis struck in mid 2008, prompting the conservatorship (ongoing damage in the line item Treasury Stock on the Balance Sheet). And, by the way, the one that authorized the initial issuance of $1B SPS for free, fined as well, as it reduced core capital: Additonal Paid-In Capital account, against the FHFA-C's Rehab power to begin with (Paulson needed $1B additional reduction of capital to justify the conservatorship)
The 3 rounds of $4.9B in Punitive Damages are secured, knowing that it's been a simple case of Transition Period to build capital (15 years), with a back-end Capital Rule (when it's announced and fully effective at the end of the typical Transition Period, as commented yesterday)