Replies to post #606487 on Fannie Mae-No Politics (FNMA)

[FOFreddie]

Thanks for the reply

What precedence to you think this might be for other companies taking money from the US Treasury?

If the US Treasury invests in airlines and oil industry companies, perhaps a future US Congress passes a version of the Green New Deal whereby the Department of Energy has the right to sweep all future profits to pay for mitigating climate change?

Isnt there a dangerous precedent here with what was done with HERA? When capital was raised with the massive JPS offerings - OFHEO was the regulator and then FHFA became the regulator with vastly different rules and capital standards? Dont you see a dangerous precedent here going forward?

[Wise Man]

A CONSERVATOR HAS FIDUCIARY DUTY WITH THE SHAREHOLDERS AND THE ENTERPRISES. It doesn't need to be written in a law. It's its definition and the traditional view of a conservator. That's why the rights and powers of both were momentarily transferred to the Conservator in HERA's succession provision.
The thought that a conservator can begin to spoil the companies after being appointed is crazy. It can't even be used as an script for a movie because nobody would believe it.
There's other side in the deal: The Secret Plan. Coming soon to theaters.