Fannie Mae-No Politics (FNMA)

[contrarian bull]

Many times former shareholders are awarded damages. I specialize in "troubled" stocks and dozens of times - years after I've sold a stock - I get a letter saying there was a judgement in favor of shareholders. I have to supply records showing the purchase dates and sell dates for shares I held during the time the damages occurred.

In the case of Fannie and Freddie damages occur every time another sweep is taken, so technically a successful shareholder class action suit would award everyone who owned shares between the beginning of the sweep and the end of the sweep if you held them on the date a quarterly sweep was ordered and taken. It would be a paperwork nightmare, but would be fair.

Usually these windfalls from class action suits give me just a few pennies a share and sometimes it's not worth the hassle of filing for $20. But sometimes it brings in half the value of the stock.

So - yes a class action shareholder suit could reward former share owners, but so far I know of no such suit being filed. Maybe if the NWS is officially ruled illegal we might start one.

QUESTION: If you owned 10,000 shares, sell 3,000sh, then 2yrs from now the courts award shareholders $$$$$ for the excess paid to UST. Does the shareholder get $$$$$ for the 3,000sh they once held, but sold 2yrs before court ruling or just the 7,000sh they hold?