Thread by @CarlosVignote

1991.THE BANKS' FDI ACT ADDED AN EXACT REPLICA OF FnF's CURRENT RESTRICTION ON CAPITAL DISTRIBUTION +EXCEPTION B:REPAY SPS
Included in the subsection(d)PROVISIONS APPLICABLE TO ALL INSTITUTIONS,of the Section PROMPT CORRECTIVE ACTION(12USC1831o)#Fanniegate @Scotus @TheJusticeDept

Just before the provisions w/ the corrective actions when Undercapitalized, Significantly Undercap or Critically Undercap, because it's for all of them.
In FnF's 1992 FHEFSSA,this restriction appeared individually as a supervisory action for each Capital Classification mentioned.

What 2008 HERA did, is to remove this corrective action from each Capital Classification and put it as a stand alone provision for all of them, a replica of the FDI Act 1991 amendment.
But,instead of placing it on a subsection Provision Applicable To All Institutions,it was added

straight to the end of the section Capital Classifications.
One of the first measures of the @FHFA-C was to(unlawfully)suspend the Capital Classifications needed for the release,in an attempt to make this restriction go unnoticed,as people wouldn't read this section.There's more!

The evidence that the FHFA aimed at burying this Restriction on Capital Distributions,is also found in its 2011 Rule, linking this suspension with "FnF not subject to statutory prohibitions on capital distributions".
It knew it's a lie, that's why it added exception(1)"for Recap"

@threadreaderapp unroll