Fannie Mae-No Politics (FNMA)

[big-yank]

Hedge fund plaintiffs are leading the privatization pathway. Holding the preferred shares is the key to a reorganization to privatize the GSEs, make elements within Congress happy... the Grover Norquist balanced budget cretins like Paul Ryan and the Tea Party... and steer the mortgage finance MBS market and insurance businesses to a new cadre of privateers, sub-profiteers.

Bruce Berkowitz of Fairholme was one of the first to step into the privatization fracas. But don't leave the Perry Capital crowd out of the picture, either. There is a reason why these fund managers are willing to front $ gazillions in legal expense to litigate shareholder claims. And there is a reason that they hold preferred shares, like Timothy Pagliara, Glen Bradford and other notables hold similar stakes in preferred equity.

These guys are really the ones that want to steal your Fannie?

https://www.thestreet.com/story/12108118/1/freddie-freddie-hedge-funds-could-claim-victory-go-home.html

These guys could give new meaning to "wind down" of Fannie Mae and Freddie Mac. By some definitions, that appears to mean wind down the old junk with a 30year payoff to common shareholders while all the business, going forward, goes to the preferred shareholders in an entirely new, private entity.

http://online.wsj.com/public/resources/documents/FairholmeOffer.pdf

Then, again, maybe Berkowitz and Perry are really just philanthropists, looking out for the financial health of all the little people whose savings, retirements and pensions were affected by the housing crisis. I guess it is plausible that these icons of Wall Street will throw their high profile investment clients under the bus to help out Mr. & Mrs. Mainstreet recover their common equity's original worth. Yeah, right.

JMHO.