Replies to post #86599 on Fannie Mae-No Politics (FNMA)

[makemoney18]

So in a nutshell FNMA and FMCC are winners :) thanks obiteridctum always enjoy your detailed facts.

[mikar]

That 3rd amendment is totally illegal.
This will be settled out of court, IMO.
To the benefit of the common stock shareholders.

[955]

Thanks for clarifying. I was not aware of this. I thought DeMarco was our friend since he had been opposing the Obama administration, members of Congress, and consumer groups for mortgage principal write-downs to help homeowners at risk of default to stay in their houses.

I also question whether Mel Watt is the best choice for FHFA director since he has publicly stated he is in favor of winding down F&F.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=89445735

http://investorshub.advfn.com/boards/replies.aspx?msg=89445735



"Finally, DeMarco's assent to the US Treasury's Third Amendment was a direct violation of his fiduciary duty to keep the companies in a sound and solvent condition. How can that be done if all profits are taken and capital rebuilding is prevented? It cannot. The moves were to wind down and dissolve.

So, it was collusion between the agencies, between DeMarco and Timothy Geithner, the Treasury Secretary at the time in direct violation of HERA 2008 (See Perry Capital lawsuit).

The glaring evidence of the collusion is found in the Third Amendments signed soley by DeMarco and Geithner."

[bmp152]

Thanks obit et al. I fully understand why the Treasury was in favor of passing that 3rd amendment, but why did DeMarco agree to it? I know that his only duty as GSE conservator is to return them to a solvent condition--nothing more or less.

Knowing that enactment of the 3rd amendment was in direct violation of his duty as FHFA director, why would he still do this? Was it for political positioning? Money? Did he really think this was the best move to make?

I think a subpoena of all of DeMarco's financials would be quite interesting. There has to be some conflict of interest for him to agree to that 3rd amendment. Otherwise, it just doesn't make sense.