Replies to post #785749 on Fannie Mae-No Politics (FNMA)

[Wise Man]

The CEO of Fannie Mae talked to you personally. Sure thing!

"the number 1 Risk for this stock is political risk".

It isn't a coincidence that Glen Bradford has said the same thing 5 hours later:

i weote back that the end of conservatorship is tied to admin action which is a political thing (Source)

Both of you receive orders from the same renowned hedge fund manager.

You've already been called out for making up a quote from Sandra Thompson, here, and you now come out with the same idea, contending that the resolution of the Fanniegate scandal will be political, that is, up to the decision of several lawmakers that aren't experts on the subject, seeking the so called "treatment of the shareholders".

The Separate Account isn't a political debate, since this External Position ends up recorded on the balance sheets and the culprits reprimanded (The same with the Bundesbank's "External Position" in the Central Banks' Payment Systems)

The FHFA and the UST have to work with Congress, coming clean about the Separate Account, the CRT expenses and, presumably, the UST's stake in FnF illegally built, because the TEMPORARY authority of UST to purchase securities of FnF "and engage in open market purchases of the common stocks" (image below) expired on December 2009, through the subsection (g) infinite rate/infinite amount, as the original low cost UST backup (just with obligations) is permanent (subsection (c)), with its outdated $2.25B limit (set 60 years ago when the debt outstanding of Fannie Mae was $800 millions) de facto updated with the SPSPA that used the subsection (g) of the Charter Act.
An update that should have been done by the Congress directly, instead of allowing the UST to come out with the "funding commitment", others called the fact sheet SPSPA "a contract", etc.
Primarily because this subsection (c) was the only compensation authorized to the UST in the Fee Limitation of the United States.


Subsection (c) in the Charter Act: any obligation of (b)


Subsection (b): redeemable obligatons, such as SPS.


Precisely the same words used by the Treasury in the SPSPA: "any obligation in respect of any Capital Stock, including the SPS"


This is the homonymus 2nd UST backup of FnF inserted by HERA (subsection (g)) into the Charter Act, where the SPSPA emanates from. It was the bazooka that Goldman Sachs' Hank Paulson required to Congress (Paulson's book). The original prevails.