Fannie Mae-No Politics (FNMA)

[obiterdictum]

Do you have an opinion on "The GSE BOND TRUST Settlement" letter that many of us have received?

No.

My letter says, "In re: GSE Bonds Antitrust Litigation Settlemen".
The letter says its a "Court approveed Notice". and the address is Milwaukee Wi.

See: In re GSE Bonds Antitrust Litigation (1:19-cv-01704) - District Court, S.D. New York
https://www.courtlistener.com/docket/14573344/in-re-gse-bonds-antitrust-litigation/ - there are three pages of document listings.

My question is in regard to the bonds. It would appear the Bondholders were not harmed, but rather the shareholders.

This is a class action suit concerning GSE bond transactions.

In previous settlements, the money (apparently) wound up in the USTreasury, as dividends, because of the net worth sweep.
Its curious as I have never owned "GSE BONDS", so I am guessing that this settlement applies to at least some shareholders who owned shares at a specific period of time.

No. The settlement class is:

All persons and entities who or which entered into a GSE Bond Transaction with one or more Defendants or a direct or indirect parent, subsidiary, affiliate, or division of a Defendant during the Settlement Class Period.

Not in the settlement class:

You are not included in the Settlement Class if you are a Defendant or a direct or indirect parent, subsidiary, affiliate, or division of a Defendant. In addition, all federal government entities and any judicial officer presiding over this Action and the members of his or her immediate family and judicial staff and any juror assigned to this Action are excluded from the Settlement Class. - http://www.gsebondantitrustsettlement.com/

Glossary

Defendants are Barclays Capital Inc.; BNP Paribas Securities Corp.; Citigroup Global Markets Inc.; Credit Suisse Securities (USA) LLC; Deutsche Bank Securities, Inc.; First Tennessee Bank, N.A.; FTN Financial Securities Corp.; Goldman Sachs & Co. LLC; J. P. Morgan Securities LLC; Merrill Lynch, Pierce, Fenner & Smith Inc.; TD Securities (USA) LLC; Nomura Securities International, Inc.; HSBC Securities (USA) Inc.; Cantor Fitzgerald & Co.; SG Americas Securities LLC; Morgan Stanley & Co., LLC; and UBS Securities LLC.

“GSE Bond Transaction” means any purchase, sale, or other transaction in the secondary market with respect to any GSE Bond.

“GSE Bond” means any and each unsecured bond or debt instrument (i.e., senior debt, subordinated debt, and junior subordinated debt) regardless of currency or credit quality, issued by Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Farm Credit Banks, and Federal Home Loan Banks.

“Settlement Class Period” means the period from January 1, 2009 through and including January 1, 2019.

I would appreciate your opinion on this settlement, specifically if it applies to shareholders or bondholders alone. (I cant see how bondholders were damaged, just shareholders, since FNMA guarantees the bonds).

The settlement class is given above.

GSE Bonds are not guaranteed by the GSEs or the US Government.

115. GSE Bonds are all issued by Fannie Mae, Freddie Mac, FHLB, or FFCB, and therefore carry substantially similar levels of credit risk. Credit risk is the risk that an entity will default on its repayment obligations. Unlike U.S. Treasury bonds and bonds issued by certain federal agencies, GSE Bonds are not backed by the full faith and credit of the United States government, meaning they are not guaranteed by the federal government. Credit risk is generally low for GSE Bonds, however, because GSEs benefit from a perceived tie to the federal government as institutions established under federal legislation. Debt issued by GSEs generally has high credit quality. The senior debt of Fannie Mae and Freddie Mac is rated Aaa/AA+, while the subordinated debt of Fannie Mae and Freddie Mac is rated AA-/Aa-. The long-term debt of FHLB and FFCB is rated Aaa/AA+, while the short term debt of FHLB and FFCB is rated P-1/A-1+. In September 2008, the Federal Housing Finance Agency became the conservator of Fannie Mae and Freddie Mac, which permitted them to meet their obligations on over $1 trillion in outstanding bonds.- THIRD AMENDED COMPLAINT - https://www.courtlistener.com/docket/14573344/254/in-re-gse-bonds-antitrust-litigation/ - page 29.