Fannie Mae-No Politics (FNMA)

[955]

Release the docs, NO SETTLEMENT. Go for the jugular, Gov did. Folks need to know what Gov is attempting to do here.

Bryndon Fisher WILL drop his lawsuit IF:

per Tim Howard blog comment

"The following terms are a must in any settlement where I might consider dropping my lawsuits:

The FHFA must 1) strike down the third amendment to the SPSPA as contrary to its mandate under HERA to put the entities in a sound and solvent condition, 2) declare the Treasury Department and the American taxpayer repaid with the March 2014 “dividend” payment and, thus, the senior preferred stock fully redeemed, 3) extinguish the warrants issued to the Treasury Department as unnecessary for repayment, 4) permit the GSEs to relist their securities on the NYSE, 5) allow the entities to recapitalize through a prudent mix of debt, equity, earnings, and overpayments made to the Treasury Department since March 2014, and last but not least 6) release the entities from conservatorship, and return them to the real shareholders – us.

Of course, this list is not all inclusive. I would like to see the government acknowledge, and implement, a proper accounting of Fannie Mae and Freddie Mac since 2008 in order to determine if the two companies paid dividends unnecessarily. I suspect they did. But, this is a good stepping off point. Cheers."

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=116593211

These cases will not be “over” for many years if they are litigated to the end. Elections are next year. What matters to the White House is what happens between now and then. The White house cannot afford the release of these documents, should that happen, they lose control of the situation.

What makes the most political sense is to settle them and let everyone walk away happy and keep the protected docs under seal…………