Replies to post #600604 on Fannie Mae-No Politics (FNMA)

[mrfence]

Obviously Negative Nancy gets overtime ;-)

[kthomp19]

Sooooo, what does "preserve and conserve" mean, as stated in Hera?

According to the definition in 12 USC 4617(b)(2)(B)(iv):

(B) Operate the regulated entityThe Agency may, as conservator or receiver—
(iv) preserve and conserve the assets and property of the regulated entity;

I don't see a definition for what exactly it means. However, it does state "the regulated entity", which is different from its shareholders. As I have said before, the fact that it is possible for FHFA to mandate an action that both helps the companies recapitalize and hurts shareholders (i.e. a massively dilutive equity raise) shows the difference. It also shows why FHFA having a fiduciary duty to the companies does not imply that they also have such a duty to shareholders.

-Take every last cent.

-let the companies pay the government for 12 years ad infinium, no
chance of release.

-fhfa and treasury can do whatever they want, courts are just for
show.

Yes, these three are laughable. All three are about the NWS. However, none of them apply to the original SPSPAs: even though FnF didn't have the option to pay down the seniors while the funding commitment existed, they could issue stock to pay down the seniors. While nobody would ever buy enough stock to pay off the seniors in FnF's current condition, it is conceivable that in the future they could, absent the NWS, build up enough capital that they really could sell $200B worth of stock.

The original SPSPAs were a straitjacket that still afforded a glimmer of hope at escape. It is the NWS that was the true concrete life preserver.

-Government is preserving and conserving a taxpayer company,
commons and pref's do not matter.

Other than the "taxpayer company" part, this one is correct. Shareholders have nothing to do with FHFA's mandate to conserve and preserve the assets and property of FnF, because FnF equity shares do not fall under either category.

-Do what's only necessary to make pref's whole, because they are
the company, and no other investor matters.

Who has ever stated this?

Most of your arguments, in varying obtuse obfuscated ways support most of these.

Provide specific examples and proof; otherwise this claim is what is laughable.