Fannie Mae-No Politics (FNMA)

[contrarian bull]

Nobody gets cancelled, but same effect.

If all of the suits get dismissed neither the common or junior preferred will be cancelled. Why would they? Cancelling the common shares means someone other than the shareholders own fannie and freddie. Who would that be? They are worthless companies with the perpetual sweep so nobody would want that liability. Even the FHFA with their almost unlimited power can't nationalize them.

Cancelling the junior preferred would mean they get paid at par, or a new round of suits. Why cancel them - they are an interest free $33 billion loan that never needs to be paid back. Nice deal.

Maybe you meant they would effectively be cancelled, because with no more suits there truly is no end ever and both common and junior preferred are worthless. I agree with that.

Or were you talking about a liquidation? No way FHFA would liquidate them - the cash flow would stop.

If they don't do a recap and release by 2028 the warrants will expire and the last motivation for the government to recap/release will be gone. We only have 10 more years of hoping, then no hope.

That said I did buy more common shares today...

If Sweeney Dismisses, FHFA/Treasury will continue the perpetual Sweep ad nauseam. If Sweeney Dismisses, Everyone is Getting Cancelled -- Commons and Preferreds alike. Hopefully that isn't the Christmas Gift we will all be receiving this year, because that's right around the time when she could possibly rule on the MTD.