Fannie Mae-No Politics (FNMA)

[big-yank]

Interesting question. First off, I have always said Amendment 3 was an overreach and would be overturned or seriously modified. But the sweep has nothing to do with the warrants. So let's go back to the warrant discussion.

There was huge evidence in financial circles that the GSEs were in deep shit in 2008. Barron's ran a very condemning article espousing that claim, along with much supportive content that reached the same conclusion. A renowned housing expert, Professor Anthony Sanders wrote extensively about an insolvency risk at the GSEs. There is going to be no document produced from any further discovery release that proves no bailout was needed. There could be dissenting views uncovered. But, at the end of the day, the government is not going to admit they just made everything up to steal anyone's Fannie.

Now, for part 2... could any scenario develop where government might simply concede the warrants? Sure, I suppose that is possible. But I think any settlement has been rendered a near impossibility because the litigation playing field has become so engorged with so many plaintiffs and legal teams with conflicting agenda's that they will never agree on a lone "deal" for everyone. So I think this was possible awhile back, but now is just a pipe dream.

JMHO.