Fannie Mae-No Politics (FNMA)

[Zmarzz]

I do not think the litigation will ever end and here's why:
1) We will continue to see a steady release of government documents that undercut the legal position taken by the federal government in court. We still have many, many thousands of documents to go.
2) We have an enormous number of extremely wealthy people in this country who could easily afford to litigate this matter. If you can buy $1 billion in preferred shares for $100 million, and then risk an additional $5 million in legal fees, the upside is a NINE HUNDRED (900) percent return, plus any dividends that you might receive. The downside is $105 million, which can be offset against any capital gains you might have.
In other words, over time, the legal position of the claimants should improve, and with a risk/reward ratio of 10:1 or better, I think we will see lawsuits filed well into the future.