Replies to post #565355 on Fannie Mae (FNMA)

[stockprofitter]

STICKY

[Guido2]

Thanks for sharing your great insights.

[AuntyMamie]

Excellent points. The key to the last 11+ years is 'constitutionality'. Nothing else matters -- nor should it -- to SCOTUS. Once that's determined. EVERY action may be examined and UNWOUND. Cuz its OBVIOUS to anyone who SEES that FHFA structured without 'checks and balances' was able to sweep the assets of FnF to the benefit of the corrupt-crony-cabal. It was an elaborate scheme designed and executed by corrupt politicians, unethical civil servants, self-serving lobbyists and dirty wallstreet hustlers. Every step taken by TSY and FHFA insured the wind-down of these companies. NOT THEIR SURVIVAL. The "fellow travelers" would be richly rewarded in the process. The debt investors, shorts, hedge funds, pols, ALL OF THEM. They knew 'THE PLAN' being executed to sweep profits from mainstreet to wallstreet. They wrote the script. And the politicians they OWN read their lines.

SCOTUS will demand those 11,000 documents PLUS more. Cuz the formation of FHFA (and CFPB) is the keystone of corruption. And EVERYONE who is ANYONE knows it.

It's impossible to run and maintain a nation -- much less a financial market -- with people who are willing to destroy the bedrock of our civilization. Hold on tight. It's about to get really bumpy.

[RumplePigSkin]

Page 13 of 5th Circuit En Banc opinion.

The net worth sweep transferred a fortune from Fannie and Freddie to Treasury. When this suit was filed, the GSEs had paid $195 billion in dividends under the net worth sweep. Under the Agreements more broadly, Treasury had disbursed $187 billion and recouped $250 billion, thanks largely to the net worth sweep.

On page ~39

As a textual matter, the net worth sweep actively undermined pursuit of a “sound and solvent condition,” and it did not “preserve and conserve” the GSEs’ assets.192 Treasury has collected $195 billion under the net worth sweep.193 This alone exceeds the $187 billion it invested.194 After paying back more than the initial investment, the GSEs remain on the hook for Treasury’s entire $189 billion liquidation preference.195 And under the net worth sweep, Treasury has a right to the GSEs’ net worth in perpetuity.196

link: http://www.ca5.uscourts.gov/opinions/pub/17/17-20364-CV2.pdf