Replies to post #607988 on Fannie Mae-No Politics (FNMA)

[EternalPatience]

Let us all leave aside

1) 2008 history
2) AIG and reverse splits
3) What Bush did, What Obama did
4) Personal Vendetta
5) PReferred or common
6) etc etc etc

It helps no one

and look at what make sense today....

we have argued and discussed about it day in day out as well as weekends are filled with pretty much the same topic..

[Possum336]

The scenarios of the GSE's and AIG situations are strikingly similar. The government will get their pound of flesh from the common holders just like in AIG but the preferred will be paid in full just like the pre existing preferred from AIG, national city bank, Citi, Bear Stearns, Merril Lynch, Countrywide and all of the others that were merged and not liquidated. Even the preferred from Indymac got a payout from liquidation and the common did not. It is truly an uninformed position to assume that the common stocks will receive anything before the preferred holders are satisfied. The country is dependent on the GSE's to maintain stability in the housing sector and they will be around for a long long time.

[Wise Man]

Once again you state something untrue to make your point contending that the bailout of FnF and AIG are the same.

At such time in 2008, no operative regulatory authority existed under the Charter Act, only HERA.

So, in 2008, all of a sudden the Charter is invalid. Wow!
Anyway, all the provisions that I mentioned, where the relationship between the Treasury and FnF is set forth, were INCORPORATED by HERA into their Charters:
-AUTHORITY OF TREASURY TO PURCHASE OBLIGATIONS
-EMERGENCY DETERMINATION REQUIRED TO: protect the taxpayer, to promote stability in the markets,...
-LIMIT IN THIS TEMPORARY AUTHORITY: DECEMBER 2009
Etc.
Because 2008 HERA isn't a law in itself. It's a law that only amends the two laws currently in force, the 1992 FHEFSSA and the Charters.
So, stating that FnF are regulated by HERA and not the Charter is a bizarre statement.

BOTH BAILOUTS CAN'T BE COMPARED.