Replies to post #606712 on Fannie Mae-No Politics (FNMA)

[FFFacts]

You are on a roll revealing facts.

[Commons_Cancelled]

Sticky please! $FNMA Facts matter

[Louie_Louie]

Yanksghost and commons gang
Released under consent decree, MC says to new bod, hey you guys, you need more capital. New bod says, okay, we are gonna cancel prefs.

The law says he can require this...does it mean it's going to happen? Maybe, maybe not. Does it mean MC will do it personally, no. Could a new bod be involved, sure. Will the new lawyers and financial advisors be involved? Most likely.
Some folks read things literally unless it doesn't fit their narrative, then they use circular echo logic. Lol

(3) Acquisition of new capital
Require the regulated entity to acquire new capital in a form and amount determined by the Director.

[YanksGhost]

I have read it, understand it and observe that your conclusion is not fact-based and actually is totally WRONG. By the time this action commences, both GSEs will be totally beyond the critical undercapitalization point. Risk-based capital mis an entirely different ballgame.

Plus it is up to FHFA to establish the roadmap and mileposts that will set capital requirements under prevailing REGULATORY AUTHORITY. Said otherwise, regulatory authority was what allowed Lockhart to reduce capital requirements in March, 2008 BEFORE conservatorship was imposed or HERA evenn existed as a law.