Fannie Mae (FNMA)

[Fully Diluted]

Hi everyone,

If the FHFA is found to be unconstitutional, the question arises whether the shareholders would have taken the same decisions as the FHFA at that time. This is the arm's length principle (ALP).

In our case, there is no doubt at all that Freddie rejected the bailouts and was forced to accept them. This is evidenced by email communication that was revealed.

Moreover, only days before the conservatorship, F+F raised billions of dollars by issuing unsecured debt in the capital markets.
There was no reason to put the companies into conservatorship.

Shareholders had rejected the take-over because F+F had their CHARTERS with the implicit government guarantee.

If the FHFA is judged unconstitutional, the conservatorship will most likely burst from the start. Then Fannie gets an estimated $80 billion back. And damages for the missed JPS dividends? Maybe, good chances anyway. But one should consider that the JPS is non-cumulative. Even Buffett stated years ago: No damages.

Yes kthomp, it is more than 58 billion dollars. Think of the taxes Fannie paid in 2013. But we can talk about an approximation to the exact amount.


Best regards and GLTA, Fully