Replies to post #520159 on Fannie Mae-No Politics (FNMA)

[Fully Diluted]

kthomp19,

the law is above contract rights.

If the FHFA is of the opinion that the NWS is standing in the way of its mandate to make the GSEs sound, it may bring an action against it and suspend it in the meantime.

If the FHFA thinks that the 2 warrants prevent the FHFA from doing its job of making the companies sound, it can also challenge them. The warrants give the treasury 79.9% ownership at the time of exercise. Capital raises are impossible as long as the 2 warrants are not exercised or amended.

If the FHFA considers that its performance of its obligations is jeopardised by the conditions of the SPSPAs, it may terminate the entire contract. In particular, if the FHFA sees its statutory independence at risk.

According to HERA, the FHFA is an independent institution with extensive powers. FHFA alone is responsible for controlling the conservatorships. The SPSPAs are extremely questionable in all respects. Calabria is in charge by law - not Mnuchin with his equity participation.

[bcde]

"Then it's up to you to find the specific part of HERA that supports your idea that FHFA can just break the SPSPA contract unilaterally, both by ending the NWS and releasing FnF without Treasury's approval.

Here is a link to help out. Remember that by the Constitution, FHFA only has the powers that Congress specifically grants to it, so your answer must be found in HERA's text somewhere. "

kthomp19,

Main problem with your argument is, you are trying to quote private SPSPA contract terms as if they are the laws of the land. BTW SPSPA terms are not in compliance with laws.

Read 4617(f). It empowers FHFA conservator to do anything it wants and no courts can enjoin FHFA conservator from doing so.

BTW any one is allowed to cancel or renegotiate any contracts. You do not need any laws to understand this. On the other hand no one is allowed to break the laws.

Under HERA, conservator can cancel or renegotiate any contracts. HERA does not prevent Conservator to cancel or renegotiate any contracts.