Fannie Mae-No Politics (FNMA)

[Potty]

Monk, I agree the market is going much lower, but I think those stair steps may each have a pretty vicious upward spike before the rip

I cannot deal with it, so I went to cash for a while till I get some sense of where we are again -- and parked some of that cash in FnF in case of a proper SCOTUS decision on CFPB being unconstitutional and voiding past actions that have been legally challenged (so SEILA law's challenge to CID and our plaintiffs challenge to NWS...)

Here is the summary from Rule of Law Guy's Seeking Alpha article in Feb. 2020:

Summary

A litigation settlement is a practical necessity in order for FNMA and FMCC to execute their recapitalization and release from conservatorship.

The Collins 5th Circuit en banc decision, that declared FHFA unconstitutionally structured, but most importantly for Fannie and Freddie shareholders, denied retrospective relief to plaintiffs, is on hold at SCOTUS.

So one may think settlement among Treasury/FHFA and Fannie/Freddie shareholders will similarly be on hold until after SCOTUS grants certiorari in Collins and hears the case (decision in 2021).

This is wrong. SCOTUS's decision in Seila (oral argument 3/3/20, decision late summer 2020) will provide direct read-through to Collins, and represent a huge win for Fannie and Freddie shareholders.

In effect, Seila is Collins in disguise at SCOTUS, and Treasury/FHFA likely will be facing a Seila decision that provides Collins everything needed for GSE litigating shareholders to claim a $100 billion plus victory.