Replies to post #520140 on Fannie Mae-No Politics (FNMA)

[kthomp19]

FHFA has sole authority as conservator/regulator and can stop the sweep payments indefinitely at any time he or she so chooses.

Yes, but every payment not sent increases Treasury's liquidation preference by that amount. There is no free lunch.

Director also has absolute authority to end the conservatorship. FHFA director answers to NO ONE.

I bet that felt good to type, but it's still 100% incorrect. Go read the original SPSPAs, specifically section 5.3 starting on the bottom of page 8:

5.3.Conservatorship. Seller shall not (and Conservator, by its signature below, agrees that it shall not), without the prior written consent of Purchaser, terminate, seek termination of or per-mit to be terminated the conservatorship of Seller pursuant to Section 1367 of the FHE Act, other than in connection with a receivership pursuant to Section 1367 of the FHE Act.

Unless you mean to tell me that FHFA has unilateral power to break any contract it wants. In that case, all of us shareholders could just be tossed out the window at any time, for any reason, and it would be fully legal.

NO AGREEMENT TRUMPS THE LAW

BOTTOM LINE

Now you're trying to say that either FHFA has even more authority than we thought, in which case you will have to back this statement up with something from HERA, or that the original SPSPAs are somehow illegal, which you will also have to argue for in some way.

[Commons_Cancelled]

It's hard to face the facts when most of them destroy the investment thesis of $FNMA. I also like to close my eyes and shout "LaLaLa" every time i don't agree with something; however, that's not possible when we know the Good Ol' Boys Club is running the show.

Commons are going to be thrown to the wolves, and there ain't no Ifs, Ors, or Buts to stop it from happening. I realize it's a bitter pill to swallow, but swallow it we must!

#It'sComing!