Replies to post #759405 on Fannie Mae-No Politics (FNMA)

[Wise Man]

Funding has nothing to do with accountability.
The CFPB will always be accountable to Congress.
In the FHFA, it's more clear because it has LIMITED POWERS, so Congress just has to match every action with a statutory provision. In our case, the necessary oversight that points to rogue agencies carrying out a Separate Account plan.
We will never accept a judge (both judge Sweeney and Justice Alito) that, using kind words, strips out "authorized by this section", after "take any action", to satisfy the hedge funds' narrative of "Equity restructuring". And by "hedge funds", it's included the FHFA and the Treasury Department.
Something that you are also peddling continuously.

Even after judge Willett had already explained what "authorized by this section" is about in the prior ruling (5th Cir. en banc hearing), over the same case that Justice Alito was writing his opinion about. So, he had very clear what bothered in the hedge-funds' investment case and covered it up, after the other statutory provisions had already been either covered up by the plaintiffs (Restriction on Capital Distributions. Exceptions; Special borrowing right from UST; Fee Limitation of U.S.; FHFA-C's Rehab power), or outright misinterpretations by lower courts. So, the SCOTUS went after the remaining roadblock in the Law.
Judge Willett:


The objective was no other than to fabricate the narrative of "abusive conservator", not accountable to Congress, to attach it to the CFPB case.
When the fault is attributable, precisely, to the lack of oversight of the Federal Agencies UST-FHFA from Congress, not that they aren't accountable to Congress. With, for instance, senator Sherrod Brown stating in a hearing that the Conservatorships were being very profitable for the taxpayer, without giving it a second thought. Or Rep. Blaine, first in the 2022 hearing with ST: "FnF need $300B of capital" without giving it a second thought either, and, in the recent hearing, "$100B vs $300B. They are making progress", mistaking capital needs for capital requirement and also that $100B isn't today regulatory capital but the Net Worth. So, the capital needs (capital shortfall over capital requirement) are still $300B like in 2021 that he pointed out back then, and he was just playing along with ST. The reality in the official ERCF table, is: "$-90B vs $207B" (Hence the mistake with $300B capital requirement, when it's $300B capital needs) and, adjusted for the gifted SPS that reduce the Retained Earnings account (Core Capital): $-193B Core Capital vs $207B Minimum Leverage Capital requirement. That is, a whopping $400B capital shortfall. The capital shortfall is always the same every year because FnF are not building regulatory capital due to the gifted SPS.
FHFA is always accountable to Congress, which has been missing all along.
Besides that "funding" has nothing to do with accountability, we have that the FHFA's funding through fees is justified because it provides a service of overseer ("to ensure that FnF operate in a sound and solvent condition, including maintenance of adequate capital and internal controls": FHFA director's duty. This is why all the statutory wording about capital requirements, capital classifications, mandatory actions in each capital classification, etc.) and now as conservator (put FnF in a sound and solvent condition, about restoring capital levels, that is, rehabilitation)
As pointed out in the Amicus brief by the members of Congress:

a feepayer pays the fee to receive a service or benefit in return, and is thus better off as a result of the transaction

So, there will never be a case of uncontitutionality of FHFA for its funding mechanism, like in the CFPB case, aiming to use the "abusive conservator" as excuse for its actions, instead of lack of oversight by Congress and a Separate Account plan according to the Law, plus voluntary punitive damages.
Other theme is that the FHFA has failed miserably in its two mandates mentioned, and the shareholders want these fees be returned to the enterprises.