I want to thank our friend Barron for bringing his knowledge to this board.
“ Notice I do not touch the conservatorship. That is a failed legal strategy of 15 years.”
Barron4664
08/16/23 2:32 PM
Post #763179 on Fannie Mae (FNMA)
The idea behind my proposal is for the little share holders to use their local federal district courts to put foreword direct claims for illegal exaction based on actions of Treasury and FHFA as regulator that I believe violate the Charter Act, Safety and Soundness Act, Administrative Procedures Act, and possibly the Chief Financial Officers Act. Notice I do not touch the conservatorship. That is a failed legal strategy of 15 years now and counting. A legal rabbit hole. The Treasury violates the Charter Act by attaching a variable liquidation Preference based on the amount of public debt used to the purchase of a set number of senior preferred shares and calls this a commitment fee. The same with the warrants. Defined as “in consideration for access to the commitment (public debt)”. The Director of FHFA as regulator violated the safety and soundness act and the administrative procedures act by not following the statutory duty to approve new products issued by the GSEs to Treasury for the purpose of stabilizing the secondary mortgage market. The law required the publication in the federal register of the SPS with their variable rate liquidation preference tied to the commitment. It requires a public comment period, and a rule making process to make the SPS legal. It is the same law that required the capital rule. And the same law that required FHFA a year ago issue the new products law for MBS products. They have ignored this requirement for 15 years and not one plaintiff attorney has bothered to ask why Dir Lockhart didnt do his job. My idea is that if multiple shareholders file in different districts using the little tucker act, we might get some results. Even better if different districts get different results as it would then be a controversy. These are plain language laws. If we win then everything in the SPSPA would be null. What does that mean? I don’t know. Someone smarter than me would have to figure out the unwinding of this. I do know that Mr. Kelly would be the biggest benefactor of a positive ruling of this sort. I would imagine all money returned to the GSEs. SPS and warrants cancelled.
