"the constitution says something to the fact that private property can't be taken unless for public use"
District level law altered this to allow for a taking for private use as long as it benefits the public. As stated in Kelo case.
Also, the governments argument is that nothing was taken, however. A conservatorship itself does not constitute a taking...and under a conservatorship, the conservator may issue warrants if they determine its in the best interest of the corporation, so that's not a taking either. So, the warrants themselves probably won't constitute a taking.
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