Fannie Mae-No Politics (FNMA)

[Demar]

Email Template

Here are two different templets from our website, on the Resources page (http://www.restorefanniemae.us/resources). They address shareholder rights.



1.
Letter to Congressman or Senator:




Restore The GSEs
via [Your Name]
[Date]

[Senator/Representative Name]
[Senator/Representative Title]
[Street Address]
[City, Street, Zip]


Dear [Representative/Senator]:

The Restore Fannie Mae movement would like to reach out to your office. We have gathered from across the United States to denounce the unconstitutional (via the 5th Amendment) “takings”, The Administrative Procedure Act, the conservator’s conflict of interest, and the methods employed by the Federal Home Finance Association (FHFA) in its 2008 action and 2012 amendment of the Preferred Stock Purchase Agreement. We invite you and your office to our website to learn more about our cause, and action we are taking to maintain the rule of law. It is vital to remember the long run. This dispute involves lots more than a simple battle over the proceeds of profitable ventures. All capital markets depend on the strong protection of the rule of law so that firms that invest their capital today can be confident that the government will not steal it away by stealth and artifice tomorrow, which is just what is happening now on a multi-billion dollar level.

As a member of Senate, you have a direct impact on the laws that affect us all. The majority of your constituents and the American people do not condone the actions, and unconstitutional activities of the FHFA. Therefore, we request that you take the following action:

1. We ask government officials to direct the FHFA to comply with the original intent of the conservatorships and amend, retroactively, the Agreements with the Treasury to allow the companies to use funds in excess of the 10.0% annual dividend amount for the rebuilding of their capital structures and the repayment of their debt to the Treasury. Additionally, the two firms are to be released from their conservatorships and returned back to the shareholders when each company has achieved certain risk-based capital requirements, as provided by law 12 U.S.C. § 4611(a)(1).

2. Furthermore, Fannie and Freddie are to be relisted on the New York Stock Exchange, with any remaining amounts owing on the Treasury's aggregate liquidation preferences to be satisfied by exercising whatever portions of the warrants are necessary to retire the debts and unpaid interest (dividend). In addition, through a prudent mix of debt and unused Treasury warrants, the two companies could hasten the process of full recapitalization beyond the basic regulatory requirements. Consider, too, that conservative estimates indicate that on a fully diluted basis, the initial values of the common shares for Fannie and Freddie could be approximately $37.00/share and $29.00/share, respectively. And finally, if Congress still wishes to reform the enterprises, the Congressional Research Service has provided several alternatives in their February 2013 report to Congress that are not contrary to the conservatorships, the taxpayers, or the tax-paying shareholders.

HERA stipulates that the FHFA "shall, as conservator or receiver, and by operation of law, immediately succeed to . . . all rights, titles, powers, and privileges . . . of any stockholder" 12 U.S.C. § 4617(b)(2A). This means that the FHFA acts on behalf of the shareholders and, consequently, substitutes itself as the shareholder in all derivative actions against Fannie and Freddie. However, the D.C. Court of Appeals found in Kellmer v. Raines, 674 F.3d 848 (2012) that "the statutory language bars shareholder derivative actions . . . absent a manifest conflict of interest by the conservator." Thus, a conflict of interest does exist, since the proposed action is not against Fannie and Freddie, but against the firms' conservator, the FHFA.

The FHFA's action to amend the Agreements in August of 2012 was not a lawful exercise of its power as conservator, since the amendment intentionally prevented the companies from rebuilding capital and achieving a sound and solvent condition. Additionally, the court found it essential to underscore the FHFA's mandate to Fannie and Freddie by saying that the "FHFA has the 'incidental power' to take 'any action authorized by this section, which the [FHFA] determines is in the best interests of [Fannie and Freddie] or the [FHFA]' 12 U.S.C. § 4617(b)(2J)(ii)." Clearly, keeping the firms undercapitalized is neither in the best interest of the companies nor the FHFA.

HERA makes clear the conservator's purpose of ". . . rehabilitating the affairs of [Fannie and Freddie]" 12 U.S.C. § 4617(2). Furthermore, the purpose of the conservatorships, according to the FHFA, is "to preserve and conserve each [company's] assets and property and restore the [companies] to a sound financial condition." The shareholders in these two companies relied on the promises made by the FHFA and, thus, willingly bore the risk that the economy would either not recover quickly enough or substantially enough to allow Fannie and Freddie to survive.

John Adams once wrote that we are "a government of laws, and not of men," meaning that no one person (or agency) makes the laws or decides the laws, and no person (or agency) is above the law. The shareholders (both common and preferred) in these companies have legal rights that cannot be ignored or circumvented for political conveniences or objectives. And although the FHFA is owed a debt of gratitude for their sterling leadership during the dark days of the Great Recession, they need to return these entities to their rightful owners – us. You now seem to have some bipartisan support, which is one more sober reminder of how far the nation has drifted from the sound and enduring principles of strong property rights and limited government.



Sincerely,


[Your Name]
Restore The GSEs
www.refm.us






2.
Letter to local politician




Restore Fannie Mae [City]
via [name of individual sending letter]?July [], 2013
[Recipient Name]
[Title]
[Street Address]
[City, Street, ZIP Code]



Dear [Recipient Name]:??

The Restore Fannie Mae [City] movement would like to reach out to your office. In case you have not received the messages or press releases we have sent, we are a local chapter of the national Restore Fannie Mae movement. We have gathered from [City] and across the United States to denounce the unconstitutional (via the 5th Amendment) takings by the FHFA, and the unconstitutional “takings” of the third amended, Treasury imposed, preferred stock purchase agreement.

As an elected official, you represent the people of [City]. It is important to know that our representatives understand the concerns and needs of their constituents. We speak with the rest of America when we say that we do not condone the feudalistic, and unconstitutional activities of the FHFA. Therefore, we would like for you to...

1. [Possible local action he/she can take (e.g. declare position)]
?2. [Possible local action he/she can take (e.g. visit local protest)]?
3. [Possible local action he/she can take (e.g. promote local protest)]

Please show this community your understanding and willingness to hear their concerns. You may contact our political liaison with your response. We look forward to hearing from you soon. Thank you so much for your time [and God bless America].??


Sincerely,???


Restore Fannie Mae [City]
?[Local Contact Info]
?www.restorefanniemae.us