Replies to post #705624 on Fannie Mae-No Politics (FNMA)

[navycmdr]

...As I’ve said many times before, it would be as easy

to get Fannie and Freddie out of conservatorship as it was

to put them in it, if some critical group of officials in

the Biden administration had the political will to do so.

I believe they got close with the proposed nomination of Mike Calhoun
as FHFA director, but the bank lobby was able to sideline
(and probably kill) it.

So now we sit, with Fannie and Freddie in the impossible
position of having a half-trillion dollar shortfall from
the negative core capital they have currently (because of
the net worth sweep) to the 4.0 percent-plus required
full capitalization set by a director who raised the
previous director’s required capital level by 80 percent
at the same time as the companies had improved their
creditworthiness to the point that they could survive
the Dodd-Frank stylized repeat of the Great Financial
Crisis solely on the income from their current
guaranty fees, with no need for any initial capital at all.

[Stern is Bald]

I dont get GSE boards being shielded from lawsuits… i dont think that would hold up from direct suits from shareholders if they went that route but at this point youd gain nothing… maybe from other agencies like GAO….

[955]

Hanky panky Paulson actions are the norm, NOT the exception, of the banking industry. Placing bankers in Gov positions is a recipe for disaster. HUGE CONFLICT OF INTEREST. All bankers are professional white collar thieves and liars that get a free pass in the justice system. Most if not all of Gov has been bought off. ANYONE contributing campaign/political donations is out of their bleep'n mind. It will get you in the end.


https://www.bitchute.com/video/sqTd8LtViqI0/

[Louie_Louie]

Bastard Paulson played both Bush and the BOD like cheap fiddles. He was double talking and dealing.

[FOFreddie]

Jason Thomas who was then the Special Assistant to the President for Economic Policy as part of the National Economic Council sent this Memo to Robert Steele who was then Under Secretary for Domestic Finance of the United States Treasury

http://fcic-static.law.stanford.edu/cdn_media/fcic-docs/2008-03-08_Treasury_Email_from_Hason_Thomas_to_Robert_Steel_Re_Source_document_for_Barrons_article_on_FNM.pdf

This Memo was intentionally leaked to Barrons on March 8, 2008 which was a week before mortgage market instability led to the failure of Bear Stearns and two months before over $ 5bn of new investor capital was raised for the GSE's including the issuance of FNMAT.

Check out the last page (page 12):

3rd to last paragraph: " As shareholder capital gets wiped, the government will have no choice but to seize the company and place it in conservatorship or receivership" - THIS WAS TWO MONTHS BEFORE FNMAT WAS ISSUED AND SYNDICATED TO INVESTORS IN MAY 2008

Last two sentences: " A nationalized Fannie Mae would be refocused to directly address the various problems of illiquidity, affordability and sustainability in the mortgage market. Without the need to satisfy a fiduciary duty to shareholders, Fannie might finally be able to perform its affordable housing mission in a helpful and proactive manner."

If this is not a breach of the implied covenant of good faith and fair dealing and a constitutional taking - what is?