Replies to post #160368 on Fannie Mae-No Politics (FNMA)

[crawford2012]

Obiteridctum...excellent post...I enjoy reading a well written and balanced post...good job my friend...good job!!!

Crawford~!

We are entering the final touch with the Judicial branch getting ready to make an effort. The Executive and Legislative branches of government have had their efforts recorded and viewed and we have an idea of what they are about. From now through June or so, there will be additional financial and political controversy and upheavals surrounding the GSEs coming from the Judiciary and other events.

You are correct. If there is an indication that the US Treasury, FHFA and US Government will be pressed into following the law and Constitution in these cases, the Executive and Legislative branches most likely will have to follow suit or face increasingly agitated financial, political and social conditions.

That should mean GSE release from the conservatorship or the pressure to do so and then back into the private sector before the FHFA can manipulate the GSEs any further and to keep the GSEs out of the reach of the Congress.

The Congress can repeal the GSE charters and allow the GSEs to file articles of incorporation in the state where they are located. The newly incorporated GSEs would be governed under its existing Board of Directors and executives at first and be bound to follow all the by applicable laws and regulations in the state where they are located as well as federal laws, regulations, and oversight and industry standards.

The rule of law cannot allow the taking of the companies as hostages to serve blindly as cash cows to the US Treasury or to be toyed with or eliminated and at the whim of an independent regulator, a few legislators and their party colleagues or the President and his Administration. That is the ideal outcome of just and proper judicial rulings even it if it requires an appeal to the Supreme Court.

Semper Paratus

[smoke_em]

Enjoyed reading your post. That should be all American shareholders position in a free market place, follow the laws, follow the Constitution. Its wrong for the Government to illegally continue to spin and side step laws in order to benefit from a private business when other past bail out candidates set a precedent in the past on how they shouold be dealt with (AIG). IMO, Term limits on all elected officials would do wonders on keeping the Government a Constitutional driven, honest entity.

We are entering the final touch with the Judicial branch getting ready to make an effort. The Executive and Legislative branches of government have had their efforts recorded and viewed and we have an idea of what they are about. From now through June or so, there will be additional financial and political controversy and upheavals surrounding the GSEs coming from the Judiciary and other events.

You are correct. If there is an indication that the US Treasury, FHFA and US Government will be pressed into following the law and Constitution in these cases, the Executive and Legislative branches most likely will have to follow suit or face increasingly agitated financial, political and social conditions.

That should mean GSE release from the conservatorship or the pressure to do so and then back into the private sector before the FHFA can manipulate the GSEs any further and to keep the GSEs out of the reach of the Congress.

The Congress can repeal the GSE charters and allow the GSEs to file articles of incorporation in the state where they are located. The newly incorporated GSEs would be governed under its existing Board of Directors and executives at first and be bound to follow all the by applicable laws and regulations in the state where they are located as well as federal laws, regulations, and oversight and industry standards.

The rule of law cannot allow the taking of the companies as hostages to serve blindly as cash cows to the US Treasury or to be toyed with or eliminated and at the whim of an independent regulator, a few legislators and their party colleagues or the President and his Administration. That is the ideal outcome of just and proper judicial rulings even it if it requires an appeal to the Supreme Court.

Semper Paratus

[rosen62]

Obit, your thoughts please.

So if c-ship ends, does FHFA become the permanent regulator of the GSEs with just the mission to regulate the entities? Will parts of HERA continue after the conservatorship ends? What will be the power of the future head of FHFA over Fannie and Freddie post-conservatorship?

Say, Fannie and Freddie aren't in conservatorship anymore and Watt becomes the regulator. Then he has to deal with two private entities. Treasury exercises its warrants and the government becomes the majority stakeholder. But later on Treasury changes hand for Republicans. Being the largest shareholder with majority voting rights how much influence could Watt enforce unto a Rep. Treasury?

Something looks wrong in the above *politicized* picture (for democrats).

Assumptions...

The strong push to get Watt in there must be to make sure:

* conservatorship never ends (unless for a court order).
* warrants, if exercised, are fully sold within Obama's term. Tsy not a shareholder anymore. Alleviates risk of a Rep. Treasury influence.
* warrants not exercised and disposed to prevent a future scenario where Reps could have their say via a Treasury shareholder.