Fannie Mae-No Politics (FNMA)

[kthomp19]

I would argue that the non-repayability of the SPS and the current increases in the LP were clearly in the best interest of Treasury but not the GSEs.

I agree. However, the Supreme Court directly addressed this in the Collins opinion saying that was a valid exercise of FHFA's powers as conservator:

So when the FHFA acts as a con-
servator, it may aim to rehabilitate the regulated entity in a way that,
while not in the best interests of the regulated entity, is beneficial to
the Agency and, by extension, the public it serves. This feature of an
FHFA conservatorship is fatal to the shareholders’ statutory claim.

Again, you said "I'm on record saying if the GSEs can't pay the 10% and the NWS kicks back in, the FHFA will lose another court battle." The Supreme Court said that it's okay for FHFA to take actions that hurt the companies as long as those actions benefit "the Agency and, by extension, the public it serves" which contradicts your argument. Yes, the SPSPAs were one-sided. Yes, they can easily be construed as self-dealing. The Supreme Court just shrugs and says "too bad, you lose."

Never charged because it would be illegal per the Charter Act? I don't see a path for Treasury and FHFA to negotiate any commitment fee without Congressional intervention. This entire charade is a loophole to the illegality of government fees.

I can only refer you to my first signature line here. Nobody has ever filed a lawsuit based on that argument, and even the originator of such theories has cried poor mouth.

Treasury has successfully (thus far) found the way to siphon the money regardless.

Remember, they stopped siphoning actual money almost 4.5 years ago. The ballooning liquidation preference doesn't hurt the companies at all.

There may only be one verdict stating the obvious so far, but who knows what the future holds.

There has only been one jury verdict, you mean. There have been plenty of court opinions that were bad for shareholders, the worst of which was the Supreme Court's Collins opinion mentioned earlier.