Replies to post #631160 on Fannie Mae-No Politics (FNMA)

[JOoa0ky]

Both (B)(ii) and (2) would have allowed Lockhart to put FnF into conservatorship anyway, even if HERA had never existed! (B)(ii) because the accounting decisions he actually made and (2) because FnF's boards actually did consent to conservatorship. Scroll down a bit to see Section 1369A(a), which would have given Lockhart (as OHFEO director) the same powers as conservator that he had as he did as FHFA's director.

In other words, where is the indication that things would not have worked out exactly the same way if HERA had never been passed? That's the big hurdle here.

There were a plethora of ways to put FnF into conservatorship but they were not eligible statutorily... except ONE route, which was with board consent.

Within the trove of the 11,000 documents... what was revealed was that Hank Paulson thought he was the Godfather and made FnF's board take an offer that they 'couldn't refuse.'

It was a stick up.