Fannie Mae-No Politics (FNMA)

[McInc]

words got circulated around over night and some ppl. started to realize all the bashing on F&F was nothing but smoke and air.. the truth remains in the hands of the Big money: F&F will NOT be wound down (or "liquidated" - some ppl. apparently mixed up "conservatorship" with "receivership"), it's just legally impossible. the most likely outcome is that they will eventually remain as they are. It will get clearer once they pay off the Treasury.

http://fhfa.gov/webfiles/35/FHFACONSERVQA.PDF


Q: What are the goals of this conservatorship?
A: The purpose of appointing the Conservator is to preserve and conserve the Company’s assets and property and to put the Company in a sound and solvent condition. The goals of the conservatorship are to help restore confidence in the Company, enhance its capacity to fulfill its mission, and mitigate the systemic risk that has contributed directly to the instability in the current market. There is no reason for concern regarding the ongoing operations of the Company. The Company’s operation will not be impaired and business will continue without interruption.

Q: When will the conservatorship period end?
A: Upon the Director’s determination that the Conservator’s plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship. At present, there is no exact time frame that can be given as to when this conservatorship may end.

Q: What happens to the Company’s stock during the conservatorship?
A: During the conservatorship, the Company’s stock will continue to trade. However, by statute, the powers of the stockholders are suspended until the conservatorship is terminated. Stockholders will continue to retain all rights in the stoc k’s financial worth; as such worth is determined by the market.

Q: What happens if the Company is liquidated?
A: Under a conservatorship, the Company is not liquidated.

Q: Can the Conservator determine to liquidate the Company?
A: The Conservator cannot make a determination to liquidate the Company, although, short of that, the Conservator has the authority to run the company in whatever way will best
achieve the Conservator’s goals (discussed above). However, assuming a statutory ground exists and the Director of FHFA determines that the financial condition of the company requires it, the Director does have the discretion to place any regulated entity, including the Company, into receivership. Receivership is a statutory process for the liquidation of a regulated entity. There are no plans to liquidate the Company.

Q: Can the Company be dissolved?
A: Although the company can be liquidated as explained above, by statute the charter of the Company must be transferred to a new entity and can only be dissolved by an Act of Congress.

Big money knows these bogus "proposals" will never be voted up in Congress.. all but for political shows only.
there is just no way these funds are throwing billions of dollars at something carrying such risks as some have 'claimed'..