Strategic Plan - Federal Housing Finance Agency - Fiscal Years 2013-2017
the following is a follow-up from a posting made by kamdesigns84 relating to FHFA's Booklet entitled Preparing a Foundation for a More Efficient and Effective Housing Finance System. The point being made by kamdesigns84 was that "Conservatorship is terminated when company(ies - GSE's) is (are) solvent.
The wording used in the document that "implies" this to be true is the following, and i, too, agree the intent of the language being expressed in that FHFA booklet is to "terminate when solvent." is shown by the following
sentence from page 25, quote:
Duration of the Conservatorships
The Enterprises were placed into conservatorships in September 2008 in the midst of unprecedented financial crisis. As conservator, FHFA stands in the place of each company’s shareholders, boards, and management, with the responsibility to preserve and conserve the assets and property of the companies and to place the Enterprises in a sound and solvent condition.
I would thing that after a year and a half of making a profit, Fannie and Freddie are getting close to becoming solvent, and it appears, by the charge expressed in this FHFA booklet, they MUST be released from C-Ship.
This should be the the basis that is expressed in letters to congressmen. Save this language and reference to the source of it. It was discovered by kamdesigns84. This, to me, is the strongest backing against any kind of "reform" I"ve seen, and is a clear indication that release from C-Ship is what was, and IS, intended to
occur. to find full text,
GOOGLE FHFA CONSERVA.pdf
Excellent find. I just read the entire report and clearly the intent of conservator-ship is to restore and revitalize the companies with a structure to help shift risk from Taxpayers to private industry. While they did not anticipate it would get to this point this fast, they must now consider the end goal of "financial health" as a factor for exiting C-ship. So having large hedge funds express the willingness to "help do their part" should be consistent with the mission of restoration. There is a recognition that the role played by FnF are so critical to the economy of the United States of America, that today's sell-side press buzz words of "Liquidation" and "Wind-down" if not for the free speech amendment of the constitution would be criminal and approximate a National Security Issue. But of course, it is likely true capitalist behind this distortion in the form of "news" merely looking to get in on the cheap. Accumulate on all pullbacks is my plan. Thanks again.
speaking of news media, when i found this i sent a copy of the pertinent part to a bloomberg news
reporter who has been covering this corker/warner bill they plan to introduce and asked her if possible to see if she could get an interview with a government person and ask them about
being released from c-ship when they are solvent...