Replies to post #12317 on Fannie Mae Preferred S (FNMAS)

[Joe Stocks]

Got me? I have just heard it referred to as banking laws under the Safety and Soundness Act. Probably has to do with no better place to regulate them. I think it is discussed here in the FHFA final rule;
http://www.fhfa.gov/webfiles/16603/finalruleaffhsggoals9210.pdf
and here;
http://www.fhfa.gov/webfiles/21592/Conservatorship_and_Receivership_Final_Rule-signed.pdf

Excerpt;

While operating an entity in
conservatorship, continuation of the
mission of the institution and fostering
liquid, efficient, competitive and
resilient national housing markets may
be in the regulated entity’s best interest,
and are consistent with the Safety and
Soundness Act’s provisions governing
operating entities. These activities of a
conservator may not be aligned with the
ultimate duty of a receiver, although in
the process of finally resolving a
regulated entity FHFA will need to
strike the proper balance between
continuing certain operations pending
liquidation and terminating other
operations. This balance may include
temporarily operating in support of the
failed institution’s mission. FHFA
agrees with the Banks that some
activities appropriate in conservatorship
are less consistent with a receivership.

another;

(b) Agency as receiver. The Agency, as
receiver, shall place the regulated entity
in liquidation, employing the additional
powers expressed in 12 U.S.C.
4617(b)(2)(E).