Replies to post #640355 on Fannie Mae-No Politics (FNMA)

[Commons_Cancelled]

The juniors are the fulcrum right now, and that's where the big money will be made.

100% FNMA Facts!

[Robert from yahoo bd]

Quote: "So while FnF aren't technically bankrupt, they will be treated as if they are."

This is a fundamental flaw. A conservator, cannot siphon off the profits and deplete the capital of its wards. Especially through self enrichment.

[GAK-]

Quote: "Calabria said that conservatorship is essentially administrative bankruptcy, with him as the administrative bankruptcy judge. Therefore FnF being in conservatorship is the same as being in bankruptcy"

As I read the Collins Plaintiff brief, one of the central points of their argument is that FHFA cannot be BOTH conservator and receiver at the same time. According to HERA, the agency must formally notify congress if it takes on the role of Receiver. Therefore, to take actions as a receiver (liquidation) while only claiming the title of Conservator is a violation of APA.

[Fully Diluted]

Hi kthomp19,

I think you've memorized it wrong when you write:

Calabria said that conservatorship is essentially administrative bankruptcy, with him as the administrative bankruptcy judge. Therefore FnF being in conservatorship is the same as being in bankruptcy, at least in Calabria's opinion.

Calabria has in fact made the following comment:

"Since their failure in 2008, I’ve been advocating that Fannie Mae and Freddie Mac be placed in receivership, which is essentially an administrative bankruptcy."
https://www.cato.org/blog/receivership-does-not-end-gses

Well, you are not the only one who confuses conservatorship with receivership.

GLTY :-D