HERA LAW - LIMITATION OF US TREASURY - ENGAGING IN OPRN MARKET PURCHASING - BUT NOT SHORTING A) GENERAL AUTHORITY.—In addition to the authority under subsection (c) of this section, the Secretary of the Treasury is authorized to purchase any obligations and other securities issued by the corporation under any section of this Act, on such terms and conditions as the Secretary may determine and in such amounts as the Secretary may determine. Nothing in this subsection requires the corpora- tion to issue obligations or securities to the Secretary with- out mutual agreement between the Secretary and the cor- poration. Nothing in this subsection permits or authorizes the Secretary, without the agreement of the corporation, to engage in open market purchases of the common securities of the corporation.
THEY COULD NOT BUY THE SECURITY BUT WHAT IS LEFT OUT WAS KEY! THEY COULD SHORT THE HECK OUT OF IT!!!!!
Tie this together the treasury used TARP funds to create warrants for themselves & other hedge funds & blind trusts I am sure!
These could be pledged against short bets on other securities in lue of having to ever deliver as collateral back stop if all went wrong! But if the treasury was successful they could kill the common of Fannie & Freddie make all those funds, also keep the tarp funds used as collateral.
Just so happens the second largest holder of such warrants was WATERSTONE CAPITAL WHO WAS ALSO SHORT MILLIONS OF SHARES OF FANNIE . COULD!!! Have used these TARP warrants as collateral back stop!
Lockhart action as conservator was completely illegal because he increased loan limit of GSEs Lockhart action as conservator was completely illegal because he increased loan limit of GSEs so that he can move $400B subprime mortgage from WS banks to GSEs. That's completely wrong. You donot conserve company by buying bad assets. He will be asked under oath why did you move bad assets into GSEs. He is in big trouble. The government should not get any dividend or warrants because government was using GSEs to clean mess created by WS banks. I am surprised why these questions were not being asked to congressmen and senators.
IMO in light of the bashing, and nefarious new blurbs---they are trying to scare us out---WE WILL WIN--HOLD
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