Replies to post #326086 on Fannie Mae-No Politics (FNMA)

[navycmdr]

confirmed by e-mail with Judge Steele

this weeks Legal filing in DELAWARE is ... Jan 15th !

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[e-mail]> 7:35 AM (2 hours ago)

to Myron ... Good Mornin' Judge Steele ...

the 16th is a Sat ... do you file response on 13th ?

Thanks ...
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Steele, Myron T. <[e-mail]>
9:35 AM (8 minutes ago)

to me:

We will be filing on the 15th.

Sent from my iPad

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[e-mail]> 9:43 AM (0 minutes ago)

to Myron

Thank you ! ...

I can't believe the National Law Journal article I sent you


Michael Stegman stated that recapitalizing the GSEs would provide few resources for affordable housing and said that proceeds from the sale of GSE obligations must be used

Quote:

"for the sole purpose of deficit reduction."


Stegman is wrong on both the finance and the law. When the GSEs went into conservatorship in the midst of the 2008 financial crisis, the government secured warrants to acquire 79.9 percent of the common stock of each of the GSEs. These warrants are securities worth tens, if not hundreds, of billions of dollars — real money even in Washington. The Treasury Department could exercise those warrants, selling the underlying common stock into the markets, as part of a recapitalization plan that would enable Fannie and Freddie to build up the strong capital reserves they need to weather future storms.

But instead, the government's approach keeps the GSEs chronically undercapitalized, leaving no one but taxpayers to bankroll future bailouts in the event of another crisis.