Replies to post #758030 on Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

"On September 7, 2008, the conservator transferred his authority and exclusive right to
terminate the conservatorship under HERA to the Department of Treasury. FAC ¶ 90. This direct
action was, in effect, a nationalization of the GSEs. See FAC ¶¶ 6, 67."

"Through this forced “nationalization,” the GSEs stopped operating for the benefit of their

shareholders, and the Government took for a public use the rights, protections, and duties that

adhered to the ownership of the GSE preferred shares. As of September 2008, the FHFA, as
conservator, succeeded to all of the power and authority of the Board of Directors, management
and the shareholders (FAC ¶ 165); the conservator delegated authority to a newly constituted
Board of Directors (FAC ¶¶ 143, 182); the conservator retained overall management authority (FAC ¶ 165); and shareholders no longer had voting rights (FAC ¶ 165).
The conservator transferred to Treasury the authority to end the conservatorship and then

proceeded to restructure the GSEs so that the Government controlled management of the GSEs

and redirected the GSEs’ focus from maximizing shareholder value to providing liquidity,

stability, and affordability in the mortgage market. FAC ¶¶ 78-93. As a result of this taking, any

investment in the GSEs that were a part of a bank’s Tier 1 Capital evaporated. FAC ¶¶ 101, 107.

As a result of this loss of Tier 1 Capital, seven of the nine Plaintiff Banks were unable to
meet their capital requirements and the Government placed them into receivership. FAC ¶¶ 114,
127. While the other two FBOP subsidiary Plaintiff Banks remained solvent, the Government
invoked a rarely used authority to place them in receivership as well. FAC ¶ 128. The result was
that the Government took all of the assets of all of the Plaintiff Banks. FAC ¶¶ 129-130."

Kelly Compliant filed today.