Fannie Mae-No Politics (FNMA)

[kthomp19]

you want to issue shares from a company that has dozens of lawsuits from shareholders who feel mistreated?

Yes.

And you want to issue even more shares while the litigation is going on?

Doubtful, but it depends on which litigation. Washington Federal doesn't need to be resolved before the equity raise because it only involves damages to pre-conservatorship shareholders, and the money would come from Treasury.

and that would not be a fiduciary problem for the company towards the “old” holders?

No, because FHFA doesn't have a fiduciary duty to shareholders, and while in conservatorship the boards have no power at all.

What exactly does the BOD do in your opinion?

Whatever FHFA tells them to do. You might want to read this excerpt from page 1 of Fannie's 2019 10-K:

Our directors do not have any fiduciary duties to any person or entity except to the conservator and, accordingly, are not obligated to consider the interests of the company, the holders of our equity or debt securities, or the holders of Fannie Mae MBS unless specifically directed to do so by the conservator.

Another strikeout, how shameful.