Fannie Mae-No Politics (FNMA)

[Wise Man]

"AIG is not a comparable", says the attorney FOFreddie.
Really? Isn't it better to say that it's because FnF ARE NOT ordinary businesses? They are congressionally-chartered private corporations with a UST backup in exchange for their Public Mission that no longer exists: no g-fee subsidized anymore, the Duty to Serve geografically is what any company is after nowadays, and the countercyclical role is about secondary market operations in a financial crisis, unnecessary during an economic crisis as seen in the COVID crisis.
Law professor Nielson, who represented the FHFA in the Supreme Court when the FHFA was declared illegally structured, spotted the UST backup right away:

The section Purposes of the Charter Act, where the Public Mission is set forth, states what could be considered that the UST backup is only as a last resort, which is what has happened upon capital deficiency in FnF in early conservatorship (See my signature chart below), after FnF had tapped the private capital market for funds with massive issuances of both JPS and Common Stocks, which could be what in the end lies behind the Purpose #2. So, FnF did their part in the Charter.

The operations are financed by both Debt and Equity. FnF needed Equity. The authority of UST in the law, is a UST backup of FnF "at rates that take into consideration the Treasury yields as of the end of the month preceding the purchase" (subsection (c)), and it's about purchases of any (subsection (b)) redeemable obligations, such as SPS (obligations in respect of Capital Stock, as stated in the SPSPA)

It's time to get rid of all the attorneys surrounding Fanniegate.
Do they understand what Prompt Correction Action means? And why the JPS is recorded in Core Capital (due to the non-cumulative dividend feature or loss-absorbing capacity capital-related). By the way, they should begin learning that the law in force is the FHEFSSA if all HERA did, is to amend the FHEFSSA and the Charter Act, and even the FHFA that was created by HERA but as successor of OFHEO created in the FHEFSSA, something that judge Sweeney and the Federal Circuit ignore.
Imagine reading this chapter of HERA entitled Prompt Corrective Action and later claim that the law in force is HERA, instead of the FHEFSSA.
Chapter concealed by the parties and the judges in court. Maybe it's the "Prompt" what they don't understand. Or is it "Corrective"? Is it "Action"? Let alone what comes next "capital distribution" despite its definition set forth in the FHEFSSA (There you are! That's why they conceal the FHEFSSA. Concealment of the financial definitions, as requested by the Mnuchin's Treasury in the UST Housing Reform, "Treasury recommends Congress to repeal the statutory definitions (Source)", like Total Capital, capital distribution, Undercapitalized, Core Capital, etc), plus the supplemental section enacted in a Final Rule on July 20, 2011 by DeMarco, coinciding exactly with his Time Limitation as Acting Director, for the continuation of the Separate Account plan, but his time capital distributions applied towards the Recapitalization (outside the balance sheets: Separate Account wording. CFR 1237.12), to capture the moment when the SPS were fully repaid with the phony dividend to UST (10% and NWS dividends). Assessments in the form of capital distributions, not actual dividends (restricted and unavailbe earnings for distribution as dividend, out of Accumulated Deficit Retained Earnings accounts)