Fannie Mae-No Politics (FNMA)

[ano]

Understand where you are going but you seem to forget, FnF are all about lawsuits and the harm done, we investors see there is indeed harm done, the fixes you talk about are all about fixing the current system and no harm is done, with no questions asked. with 2 dozen lawsuits pending with all minor differences to cover earlier holes the only logical option is to settle, but as earlier attempts did not work it all about black or red now, any outcome on the 5th circuit will have its own consequences but as everything is covered at this stage the real ruling can be done, upto know they could play hide a seek but the higher you go the less errors are allowed, that is why sometimes they remand it back to the lower court saying you did not proper do your work, take a look again and make a 180% turn or your ruling please
that said it just took too long (making themselves favor the government) so they probably will not remand and release an opion within the next 4 weeks

As to the prefs and commons, I’m not claiming either to be pro pref or pro common but a NON-Cumulative preferred stock is not a Convertible preferred stock, with the suggestion they do can covert, it will be a again a breach of contract and the new administration IMO wants to make as less loose ends as possible, As the contract clearly states NON-Cumulative http://www.fanniemae.com/resources/file/ir/pdf/stock-info/series_s_12062007.pdf

IMO Bruce bought prefs as he was the first, and didn’t want to invest that much money and risk of losing it all, the sentiment was really bad at the days he bought, so I agree with him, it was the only logical solution to buy prefs to not lose all your money, later Bill bought commons figuring that the 30 year mortgage could not survive without FnF I agree with him too, it will not work without FnF, now taking into account the time line and the series preferred are a less risk option if FnF face liquidation, if FnF do not face liquidation the commons are more wise as the upside is higher (prefs max is par, common has no cap) , or course we have a number of lawsuits pending, but the eventual ruling will end the NWS, a re-ipo seems highly unpractical but now I’m repeating my self

As for new lawsuits in random order they could produce more nasty and faster claims especially when they ask retail people to file, for instance:
1)the catch 22, loan money, but you can never repay
2) being under capitalized due to conservatorship
3) 79.9% ownership with never leaving, the government should put the 5T on their balance
4) 10.000 documents should be disclosed for public interest what happened
5) Draining a company to fund the government
6) in conservatorship yet acting in governments favor
7) 3th amendment put tax payer at risk in perpetuity
8) If the pref are converted to common they admit they have done something wrong
9) EPS are not honestly disclosed (cooking the books)
10)pay damages as FNF now can never return to normal for profit companies
11)Stock manipulation
12)Government officials claiming on national tv to short a stock
13)Acting director puts FnF in conservatorship (only if they claim something on otting)

As for he damages caused it is either they are guilty or not, if guilty they should pay prefs missed payments and relist the common, if not guilty they are in the same trap as the Obama administration and the lawsuits continue forever new ones will be filed after each ruling and the bill only gets higher, as we are already in the almost 11 year now damages determined by the court should be paid to prefs and commons already including interest and inflation now, as this is a too long period to “forget” about interest/inflation (just and proper)