Capital structure is not relevant. A new administration can appoint a new FHFA chief, new Treasury Secretary. Recycle, rewind, repay what is owed to Caesar. Give to Caesar what is Caesar's. 40x return is the secured debt.
No judicial review needed. 5 trillion in the "G" fund...
The Sr. Pref. can indeed demand all debt obligations principal paid down after Treasury being "adequately compensated" for their "investment/loan". Since it is incalculable, 5 trillion will do. Sound absurd? So does wiping out pref and common shares...
No, Joseph, I disagree totally. Read HERA. It specifically has an extensive section regarding undercapitalized entities that requires an end to conservatorship and declaration of receivership in a specific period of insolvency defined by inability to meet its payment and regulated obligations. By recollection this period was 3 consecutive months.
HERA requires Fannie Mae and Freddie Mac to make payment to various housing funds, reserves and backstops in addition to payments due MBS bondholders. An insolvency would result if any of these obligations go unfulfilled.
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