Fannie Mae-No Politics (FNMA)

[Wise Man]

What part of "FHFA, an independent agency of the Federal Government" don't you understand?


It hasn't changed with Collins and the SCOTUS that simply struck the "for cause" removal restriction, but nothing about this screenshot.
Then, your

Technically FHFA has a fiduciary duty to taxpayers

melts down.
Also, the fact that, prior the patch inserted by HERA, the FHEFSSA Conservatorship pointed out that anyone could become conservator of FnF, as long as it had "financial and management expertise", which is also required to become FHFA director, and, by the way, it slams the idea of 8 random citizens making decisions about FnF that affect the conservatorships in a jury trial, or even a judge, as seen, for instance when judge Lamberth asserted firmly (fallacy):

Plaintiffs were denied dividends that they otherwise were reasonably certain to receive (Source).

In undercapitalized enterprises? With Accumulated Deficit Retained Earnings accounts?


This slams the notion of "Federal Government Conservatorship", by Maxine Waters (image) and her guard of renowned hedge fund managers. It's FHFA Conservatorship.


Also FHEFSSA Capital Rule, not FHFA Capital Rule and thus, the Critical Capital level is missing in the ERCF and "Capital Reserve" is invalid (only in the Federal Reserve System with "Capital Surplus")
In the end, all comes down to Limited Powers in the FHFA.

Finally, I'm not asking for "writing down the SPS to zero for no compensation".
The SPS were fully repaid long time ago, pursuant to the exception to the Restriction on Capital Distributions in the law.
1.8% cumulative dividend on SPS already explained.
Today's $118B SPS LP increased for free is being used to hold the Common Equity in escrow, pursuant to the exception to the Restriction on Capital Distributions in the CFR 1237.12 ("for Recap.")
Both actions uphold its statutory goal of Rehab, regarding their financial condition: "sound condition" (soundness as seen on the Balance Sheets). A different theme is "sound operations" (creditworthy borrowers, LTV, etc)
The compensation to UST is limited in the Fee Limitation of the United States of the Charter Act, still in force.
The jurors asked for the HERA text, a law that only inserted patches in the FHEFSSA and in the Charter Act. Oops!