Replies to post #760453 on Fannie Mae-No Politics (FNMA)

[Barron4664]

Rodney, good question. I think that since Congress did not exempt the Treasury’s temporary authority to purchase products of the GSEs under sec 1719 from the prohibition of assessing a fee or charge in connection with the purchase, then any reasonable person would conclude that the fees are illegal. Had a formal rule making process occurred for the new financial instrument we know as the Senior Preferred Shares with a variable Liquidation Preference pegged to a Treasury commitment of Taxpayer debt, then the statutory analysis would have stricken the Warrants offered “ in Consideration” of access to the commitment through the SPS as an illegal fee. I would think the variable liquidation Preference is also a fee since it is based on the amount of taxpayer debt funding rather than the purchase of the Senior Preferred Shares. I find it interesting that the very smart expert in the super secret separate account plan has stopped responding to my posts once I brought this inconvenient section of the statutes up. Same with KT. I look forward to their analysis and refutations as they are usually very informative and I like to hear their opinions as to why I am probably wrong. Hope to get a response at some point.