Fannie Mae-No Politics (FNMA)

[Zargis]

We're in conservatorship, not bankruptcy. There are many differences.

Then, you also have to ask:
A: legally, how can a company cancel stock, can they in the course of normal business and not bankruptcy? No.
B: can the government - through the FHFA cancel us legally, no. Why? Because the FHFA has the rights to run the GSES as if they were in their shoes, and is mandated to conserve the GSE assets.

Anyway you look at it, cancelling shares would be unreasonable and unlawful, and they would have to have a clear concise case reason to justify it.

To top it off, it would look awful suspicious when they do it during a multitude of investor lawsuits.


Fyi the conservatorship has to end soon or there will be more suits due to the GSEs having less capital to work with each quarter. The government could in the next year, place them into bankruptcy in my opinion. Which, may be quite the legal opportunity for shareholders again because the government was to not let it happen. To top it off, the government CAN'T let that happen because if it did the entire country would be f***ed.

Be well,
-zargis