Replies to post #163706 on Fannie Mae-No Politics (FNMA)

[bmp152]

rosen,

It will be somewhat difficult to determine whether FHFA adequately knew about FnF's sudden return to profitability, unless (1) a paper trail indicates such or (2) personal testimony is given stating so.

What I do find interesting, is that the FHFA is basically saying that the Treasury was not intended to profit handsomely from the 3rd PSPA. Therefore, would it not be logical to repeal the net worth sweep and fall back to a 10% dividend as per the PSPA 2nd amendment?

I think there's a distinct difference between admitting intentional guilt and admitting inappropriate ongoing policy. IMO, the first will be more difficult to prove, the latter less so.

[obiterdictum]

This is a post hoc argument adding information and ideas not documented in a decisional paper trail and any judge with an intact brain and functioning reason will not let this stand in court.