Fannie Mae-No Politics (FNMA)

[alexander77]

The consequences of Treasury and FHFA Losing in Court Go Far Beyond Us
Have Treasury and FHFA really thought about what happens if they lose these court cases? The first major problem is that they are severely damaging investor trust by their actions in this situation. That might seem like it might not have consequences. That shareholders will be grateful whenever Treasury decides to get around to being fair. That they will accept whatever offer is thrown on the table when settlement talks happen. But what about if they don't accept the offer? What about if the evidence of wrongdoing becomes so clear cut that certain shareholder's decide to go all the way with their lawsuits?

Those 13 billion dollar big bank settlements that FHFA did without shareholder approval? Back to the drawing board on those if ill intent could be proven. Shareholder's might try to pry another 30-100 billion out of the banks by making an argument that FHFA being compromised by Treasury compromised those settlements.

Without a settlement shareholder's could also try to nullify any mortgage bond purchases done by FHFA involving the big banks that weren't at fair market value.

What about all those previous foreclosures that happened? Well if the government is found to have done a taking that means that Fannie Mae and Freddie Mac were in fact owned by the government the entire time. That could reopen all previous foreclosures at Fannie and Freddie for due process reasons. The reason being that foreclosures by the government have different due process standards than those done by private lenders.

Deloitte could very well be bankrupted from the recent lawsuit that was filed against them. The 12000 shareholder's in Fannie Mae have gotten 0 respect or consideration from the government. It has been 8 awful years of fear and unfairness. Today we are still reasonable people. We may still settle. I predict that at some point we will not be willing to settle because injustice demands justice in reasonable amounts of time. Far too long already.

Author: freefrommatrix on yahoofinance