Plaintiff’s next three allegations can be broadly classified as claims that FHFA violated its “duties” as conservator and, thus, exceeded its statutory authority. This includes Plaintiff’s claims that FHFA has treated the GSEs as an ATM machines, and that FHFA violated both subsections of Section 4617(b)(2)(D).
Judge Caldwell does not dismiss any of the allegations quoted above in the subsequent analysis, instead, she says HERA gives FHFA the power to do so. Yes, facts are facts, but this determination is Very wrong and troubling .
Judge Caldwell's notes are filled with self contradictions, very wrong and troubling.
There are no dismissal of any of the facts alleged, only that HERA let FHFA and T'ry do what they did, as alleged. In short, alleged facts are not dismissed nor even disputed, it simply says that she reads HERA authorizes these "ATM" and other alleged facts. Be straight.
Turn corporate earning/profit and networth into (criminal self-serving) "dividends" or any pay-on-owe, must be a re-classification of corporate assets ! Re-classification of assets is subject to judicial review ! Why plaintiff not challenge NWS(teal) also through the "re-classification" argument ?
Q: What are the goals of this conservatorship?
A: The purpose of appointing the Conservator is to preserve and conserve the Company’s assets and property and to put the Company in a sound and solvent condition. The goals of the conservatorship are to help restore confidence in the Company, enhance its capacity to fulfill its mission, and mitigate the systemic risk that has contributed directly to the instability in the current market.
There is no reason for concern regarding the ongoing operations of the Company. The Company’s operation will not be impaired and business will continue without interruption.
Q: When will the conservatorship period end?
A: Upon the Director’s determination that the Conservator’s plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship.
1. No congressional action required to exit Cship.
2. Cship can Not be permanent.
3. Publish the criterias/tests to determine safe and solvent ! Aren't they there already ? Years ago! Gee.
But Wheeler responded, "One view of the case is the government took the stock, didn't pay anything for it and then pocketed revenue from the sales. I mean, come on." The government earned about $16 billion in profits when it sold the AIG shares and another $7 billion or so in interest.
Starr's lawyer, David Boies, argued that federal law allows the Fed only to charge a market-based interest rate for a loan during a crisis. He noted that no other financial firm bailed out in the crisis was forced to surrender equity. "The government made a political scapegoat (of AIG)" and "demonized" the company.
All profit stealing gov can do is to hide behind this "all" word, while ignoring all the "shall" word. It will be a shame for any decent judge to fall for it, and a disgrace of the system.