Replies to post #769938 on Fannie Mae-No Politics (FNMA)

[RickNagra]

This article is so old I was a toddler back then.

[Fannie Heyyyyy]

Very sad that the release you posted was 7 years ago and even that hasn't changed the fact that we are still in conservatorship. Wtf!!

[Ace Trader]

INTERESTING POINT MADE:

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no matter how much money they returned to the Treasury – be allowed to ever repay the government. These actions clearly violate the most basic requirement of HERA that instruct the Director of FHFA[iii] “to oversee the prudential operations of each regulated entity and to ensure that … each regulated entity operates in a safe and sound manner, including maintenance of adequate capital and internal controls.”

Now since a Jury found the NWS outside the statue of HERA and awarded damages, then why not another lawsuit against Treasury for taking all the profits aka(NWS) AND NOT ALLOWING THE COMPANIES to retain there profits and build reserves! Treasurys actions are to is outside of HERA

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Net Worth Sweep as to ensuring Fannie and Freddie would not be able to use their substantial profits to repay the government, rebuild capital, and return to normal business operations – all in direct opposition to the clear statutory requirements of HERA

[FOFreddie]

Commenting on this post in October since ACE Trader referenced it: Interesting piece of information regarding the American Funds - my kid's 529 College Fund was invested in the Growth Fund of America since 2001:

During her deposition, Fannie’s Chief Financial Officer Susan McFarland said that she “did not think that Fannie Mae was in a death spiral in mid-August of 2012” that would have prevented it from paying Treasury’s 10% cash dividend.[xix] In April 2012, Treasury Under Secretary for Domestic Finance Mary Miller told Secretary Geithner that she had met with officials from the Capital Group in Los Angeles (a financial services company that manages the American Funds) who “indicated that it had done a fair amount of work analyzing the sufficiency of the PSPAs and thought that they provided ‘adequate protection’ for investors.”[xx] Fannie Mae’s Chief Executive Officer Timothy Mayopoulos maintained a similar viewpoint and at an August 6, 2012, executive management meeting, stated that Goldman Sachs had “confirmed that foreign investors seem to have little concern regarding the PSPA’s upcoming expiration date.”[xxi] On August 7, 2012, a Treasury official observed that “home price, delinquency and refi trends” at the GSEs were “all very positive.”[xxii]