The Enterprises are publicly owned entities that borrowed monies in 2008 and paid more than what they owe including the 10% interest.
Obama Administration and government agencies knowingly holding the Enterprises hostage while expropriating all profits and neither the Treasury, Jack Lew nor FHFA, Melvin Watt is denying the fact. In addition, all of the expropriated funds are being used for the general purpose fund without regards to the Taking Clause of the Constitution.
Clearly, Congressman Capuano is among the most outspoken congressman that knows what is right and wrong. We are more than grateful for his HR 1036 Bill and grilling Treasury Secretary Jack Lew. The verbal exchange disclosed the true purpose of the PSPA and 3rd Amendment Net Worth Sweep while Congressman Capuano explained the history of Fannie Mae and how well it provided opportunities to own homes for the working class Americans for over 75+ years.
We want to thank Representative Mulvaney for getting to the truth about the real purpose of the PSPA and how it TRUMPED the HERA statute. It is crystal clear that Treasury and FHFA worked closely in concert as one government agency without acting independently as required by HERA to defraud the public.
The Action Plan
Both political parties must follow Congressman Capuano lead to protect and defend the Constitution by passing the HR 1036 Bill. This will allow the release, relist and recapitalization of the Enterprises without a court order while restoring President Franklin D. Roosevelt creation of Fannie Mae as part of the New Deal.
The Enterprises must immediately increase the size of their retained investment grade portfolios over the next few years. Expanding in the size of these portfolios will increase portfolio earnings over the long term to protect taxpayers. These portfolios have been the Enterprises’ largest source of earnings in the past.
The Enterprises must immediately be allowed to accumulate a financial cushion to absorb future losses if any to protect taxpayers. Therefore, Treasury must stop expropriating the Enterprises funds and apply previous payments toward the payoff of debts, interest and repurchase of all Senior Preferred Shares with the unexercised warrants.
The Enterprises must be allowed to relist in a major exchange while preparing a secondary offering to quickly recapitalize the Enterprises to protect taxpayers.