Nice synopses. But you are factually incorrect when you say HERA authorized the actions that Treasury took to invest in FNF. HERA did one thing with regards to Treasury’s ability to invest in GSEs. It modified with a sunset the ability of Treasury to purchase GSE obligations and securities beyond the amounts the Charters already authorized Treasury to buy. The SPSPA terms and conditions are extra-legal. No statute, appropriations bill or executive order allowed a $200 billion commitment fund of taxpayer money to be provided and drawn upon. That is why the SPSPA has a clause to allow Treasury to nullify everything if the SPSPA is found to be illegal. If there was an official appropriation bill that authorized the 200 billion commitment fund, there would be no need for the SPSPA. Also there would be no way for Treasury to cancel the SPS since it would have been appropriated by an act of Congress and signed by the President. That is the nature of the problem. They were supposed to just purchase 191 billion of GSE obligations, MBS, or equities. That is what HERA authorized.
Since Treasury has acted as a rogue institution with no legal basis to provide a $200 billion commitment fund. If the agreement were to be nullified, why should the corporations be required to return the money? Treasury committed theft of taxpayer money by providing that which they were not authorized to give. By doing so they did not protect the taxpayer since the taxpayer does not now own 191 billion worth of GSE obligations, MBS, or securities. Instead the Taxpayers own 2 companies with a negative net worth in the negative hundreds of billions. They have failed in their duty.
