Fannie Mae-No Politics (FNMA)

[big-yank]

If you go to gse links, scroll down to the two Edwards cases filed against PWC, then Deloitte. The initial complaint in both case lists the full roster of players in each.

It strikes me that Fairholme's attorneys exhibited an unusually high level of interest in these cases in Amicus briefs, etc., as is the case with many other pending non-auditor-based litigations involving conservatorship of Fannie Mae & Freddie Mac. I have concerns that such actions are maybe being undertaken to stall any reasonable settlement that could benefit all shareholders. That would would include me.

I want this settled, not drug out in some insane, legal "War of the Worlds" Orwellian science fiction epic. I want Fannie and Freddie released, restored, relisted and recapitalized. If that means back to 2007 status, fine. If that means with added private sector competition, fine. If that means with higher reserve requirements, fine.

But if it means liquidating preferred shares at par, doling out remnants to common shareholders in the "wind down" business that dies over 30 years and gives new "investors" putting up new capital for 100% of the future marbles... then I am not okay.

I smell a rat. And having Fairholme's lead attorney potentially recruiting a new Fellow Traveler in the Attorney General Designate scares the living hell out of me.

JMHO.