Replies to post #423886 on Fannie Mae-No Politics (FNMA)

[contrarian bull]

Rek/Others..It is my understanding that Mel CAN delay the payment

I think rek and the others are arguing two different points.

1. I think no - Watt cannot end the NWS on his own.

2. I think yes - Watt can reduce the $ amount of any dividend below the amount specified in the 3rd amendment, or choose not to declare any dividend in a quarter.

But my question is - if he does not declare a dividend - or reduces it - is the dividend still due? There are clauses in the amendments dealing with dividends due, but not paid... another can of worms.

[rekcusdo]

It is my understanding that Mel CAN delay the payment as long as it is added to the amount owed at the end.

Well,...this is a different narrative than those claiming Watt can "stop" the NWS. Delaying it is a different story.

Technically, he wasn't given the power to delay a payment. However, I think he'd suffer less political backlash and legal opposition if it were a mere "delay" rather than an intended stop.

It would come down to whether the President agrees with the delay or not. If he does not, he would fire Watt and resume the payment. If he does, he'd remain silent.

IF he does this for the next 2 payments which would then get us past Jan 1, 2018 which then brings us past the Jumpstart issue, couldn't we then have renegotiate the PSPA to show debt paid in full (which it SHOULD be) and negate those monies owed?

Possible? Yes. Likely? No. At least not without Executive Branch consent. If Mnuchin/Trump agree with this, though, then its possible.

I can't really look that far into the future...too many possibilities.

But no matter what Watt does, he's going to need support if it involves ending the NWS...from either Congress, The President or the Courts.