Replies to post #793586 on Fannie Mae-No Politics (FNMA)

[Wise Man]

"Regulatory policy": ST, responsible for the absence of the Critical Capital level in the ERCF.
HERA amended the FHEFSSA's Risk-Based Capital requirement, the Minimum Leverage Capital level and allowed the FHFA to include new capital metrics like the CET1 and the Tier 1 Capital, along with the concept of Capital Buffers, but nothing about the Critical Capital level that remains as is: 1.25% of the Retained Portfolio and 0.25% of the off-balance sheet obligations (MBS Trusts), which is met with Core Capital.


The Critical Capital level triggers a Conservatorship, established for Critically Undercapitalized enterprises.

Now it's when

"regulatory policy, capital policy and financial analysis".

Jackpot!

Not meeting a level called "critical" bothers to the scammers peddling the idea that FnF have been rehabilitated, a prerequisite required by Justice Alito, reading the Incidental Power as a tool to achieve the FHFA-C's Rehab power of soundness, with some leeway. Not a choice.
With an adjusted $-216B Accumulated Deficit Retained Earnings accounts together, the sole account that absorbs the future losses, you need a lot of pictures with your thumb up and with half smile Gioconda-style, to conceal this fraud.

[Fannie Heyyyyy]

You are wrong WISEMAN.
It is a common practice in large corporations that the company CEO also serves as Chair on the Board of Directors. While some will argue a conflict of interest, others feel that it is very beneficial for the long term health of a Company.

I assure you, this practice is quite legal.

[trunkmonk]

why is it wrong, its not, as long as they work for no other company there is no conflict of interest. I had a cousin, who was on Bank of Americas BOD for a couple years. that kind of company is different, everyone is their competition, so he could do nothing but sit on the BOD. They actually pay about equal to minimum wage to sit on that board, that i know for a fact. He couldnt afford to live since BOA stock went all the way down to 6 back then, he had a lot of it. He had to quit the board and go to work for himself.

I have seen everything, and to date, GSE conserve is the epitome of corruption in our country today. until its over, and commons are made whole, there is nothing good about what happened or is happening.

[EternalPatience]

The answer to this question is in the 10K and the conservatorship rules on the CEO pay ceiling (600k). Hint : look at the pay for CEO and what the president makes in the GSE. You will get your answer on the loophole..