Tuesday, March 10, 2015

FHFA defense in court from HERA against Fannie Mae shareholders

1. Conservator has power to wind up fannie mae. NO
2. HERA allows FHFA to give treasury all the profits. NO
3. Shareholder have no rights. NOT true, we have constitutional rights above HERA. 5th amendment.

Only if fannie is a limited-life entity! It is not!
Only way to be a limited life entity is if RECEIVER! The DOJ will tell you FHFA is conservator NOT receiver.
Only if in Recivership can FHFA Wind up begin.
HERA does not allow for Treasury to tell FHFA to give all profits of regulated entity to Treasury.
Both Receiver and Conservator are REQUIRED to preserve and conserve the assets and property of the regulated entity, There is no preserving or conserving in giving 100% profits to Treasury!

here is why:
(i) Limited-life regulated entities
(1) Organization
(A) Purpose
The Agency, as receiver appointed pursuant to subsection (a)—
(6) Winding up
(A) In general
Subject to subparagraphs (B) and (C), not later than 2 years after the date of its organization, the Agency shall wind up the affairs of a limited-life regulated entity.
(i) Limited-life regulated entities
(1) Organization
(A) Purpose
The Agency, as receiver appointed pursuant to subsection (a)
(i) may, in the case of a Federal Home Loan Bank, organize a limited-life regulated entity with those powers and attributes of the Federal Home Loan Bank in default or in danger of default as the Director determines necessary, subject to the provisions of this subsection, and the Director shall grant a temporary charter to that limited-life regulated entity, and that limited-life regulated entity may operate subject to that charter; and
(ii) shall, in the case of an enterprise, organize a limited-life regulated entity with respect to that enterprise in accordance with this subsection.
(E) Additional powers as receiver
In any case in which the Agency is acting as receiver, the Agency shall place the regulated entity in liquidation and proceed to realize upon the assets of the regulated entity in such manner as the Agency deems appropriate, including through the sale of assets, the transfer of assets to a limited-life regulated entity established under subsection (i), or the exercise of any other rights or privileges granted to the Agency under this paragraph.
(B) Operate the regulated entity
(iv) preserve and conserve the assets and property of the regulated entity; and
(D) Receivership terminates conservatorship
The appointment of the Agency as receiver of a regulated entity under this section shall immediately terminate any conservatorship established for the regulated entity under this chapter.
(7) Agency not subject to any other Federal agency
When acting as conservator or receiver, the Agency shall not be subject to the direction or supervision of any other agency of the United States or any State in the exercise of the rights, powers, and privileges of the Agency.

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