Replies to post #679600 on Fannie Mae-No Politics (FNMA)

[kthomp19]

It is not the “conservatorship” power, it is the power to put the companies into conservatorship, that power is executive, conservatorship power itself is not

No. Read Sotomayor's quote more closely:

The FHFA's most notable power and the reason we are here today is that they can put certain government-affiliated
companies under conservatorship. Conservatorships are -- are never thought of, in my experience, as an executive power. It's
historically been an adjunct to the judicial power.

She is clearly saying that both the power to put FnF into conservatorship and FHFA's powers as conservator are "an adjunct to the judicial power".

the only thing that needs to happen is releasing the meeting minutes of the boards for it to become legal

No. It's legal even without those. Washington Federal's allegation that the boards were coerced into accepting conservatorship didn't get anywhere, and no other case alleges this. It will take a new, specific challenge on those coercion grounds to get a court to look at that, and once again my signature line applies.

By changing “for cause” to “at will’ it will become executive
So we have 2 executive agencies who agreed to put the companies into conservatorship

FHFA was not an executive agency at the time. If it becomes one soon the conservatorship doesn't necessarily automatically end. And even if it did, FHFA would be forced by HERA to classify FnF as "critically undercapitalized" and put them right back into conservatorship, if not receivership.

1) They did not have the power to put Fannie and Freddie into conservatorship
2) They could not have put in place a wind-down contract as conservator
3) They sealed the documents of the voluntary consent
4) They installed an amendment to siphon-off all profits forever
5) They wound down the Companies portfolio
6) They changed regulation in the meantime
7) They installed things that DO NOT contribute to the Companies profits
8) They micromanage a shareholder company for more than a decade
9) The 5th circuit holding is not overruled yet, the Structure of FHFA is unconstitutional today

1) Yes they did, regardless of its independent/executive status. The boards consented.
2) Agree.
3) So what?
4) Agree, and that's illegal.
5) This is perfectly okay and is the kind of thing FHFA could do as regulator.
6) Also allowed by HERA; FHFA is regulator in addition to conservator.
7) So what? FHFA as regulator is not bound to "contribute to the Companies profits" with every decision they make.
8) That's what a conservator does.
9) Since the Supreme Court took the Collins case, they will either affirm or vacate and remand. The Fifth Circuit's decision has no legal power right now because it will be overridden by the Supreme Court one way or another.