Fannie Mae-No Politics (FNMA)

[obiterdictum]

Thanks rosen62. I will get to it later tonight. Appointments and meetings...

Went through the US Treasury submission of non-privileged information and it seems to me the US Treasury is in trouble if what is submitted is all that there is regarding the decision to form, approve and execute the Third Amendment. The decisional paper trail made by agency actors towards the Third Amendment found in the non-privileged information is scant.

This trouble is fully given in the August 15, 2012 action memorandum written by Counselor Michael Stegman. Under his name and apparent authorship, the Third Amendment was justified, presented to Secretary Geithner and recommended for an approval. It is clearly seen that Sec. 1117 (g)(1)(C)(iii-vi) of HERA 2008 was explicitly not considered in the formation and justification of the Third Amendment prior to approval. Importantly, there are no administrative record documents submitted by the US Treasury that consider the GSEs plan for orderly resumption of private market funding or capital market access or the need to maintain the GSEs' status as private shareholder-owned companies. The opposite is planned and only the taxpayer is considered. The Plaintiff allegations are on target and the US Treasury is without defense using these non-privileged materials alone.

See: https://docs.google.com/file/d/0Bw1bECfaOy48YmxldGRIbHdEZHc/edit - see page 448.

Sec. 1117 (g)(1)(C) (iii-vi)
(C) CONSIDERATIONS- To protect the taxpayers, the Secretary of the Treasury shall take into consideration the following in connection with exercising the authority contained in this paragraph:

‘(i) The need for preferences or priorities regarding payments to the Government.

‘(ii) Limits on maturity or disposition of obligations or securities to be purchased.

‘(iii) The corporation’s plan for the orderly resumption of private market funding or capital market access.

‘(iv) The probability of the corporation fulfilling the terms of any such obligation or other security, including repayment.

‘(v) The need to maintain the corporation’s status as a private shareholder-owned company.

‘(vi) Restrictions on the use of corporation resources, including limitations on the payment of dividends and executive compensation and any such other terms and conditions as appropriate for those purposes.