Fannie Mae-No Politics (FNMA)

[FOFreddie]

Thanks Holden

THe legal liability would be post cramdown based off securities law disclosrue and fraud allegations and violations of minority shareholder rights under Delaware law.

The suit would probably be a derivative suit or possible TRO to stop a stock offering. THe FHFA would be alledged to be acting without authority under HERA because it is not following long standing principles of Conservatorship implied by incorporating FDIC resolution principles.

The guy who wrote this White Paper is pretty smart and it is my guess that he is fair and principled:

https://www.cato.org/publications/working-paper/conservatorships-fannie-mae-freddie-mac-actions-violate-hera-established

Why not appoint a Special Committe and treat common sharholders fairly - why screw millions of families investing for their childrens college funds and retirements?