Fannie Mae-No Politics (FNMA)

[Wise Man]

***BREAKING NEWS***JUDGE SWEENEY CHARGED WITH PERVERSION OF JUSTICE ON #FANNIEGATE

-The word "may" that prefaces the conservator's Power (put FnF in a sound and solvent condition), which means Recapitalization and Reduce the obligations with the Treasury (SPS). She claims that with "may", the conservator can decide when uphold his powers and implies that he can do the opposite instead, as it's what is happening since day one (deplete Capital with dividends to UST)

-She denies the conservator's Fiduciary Duty to the shareholders, in order to not allow challenging the overpayments.

-The Warrant considered an overpayment, when the injury is suffered by FnF. Then, the shareholders' claim is barred for Derivative.

But the truth is that the shareholders have 2 DIRECT claims that debunk her assertions, versus:

1-The Warrant: the injury is suffered by the shareholders that are stripped of 79.9% of their ownership. Under S.E.C. rules, the Treasury is the Beneficial Owner of the common stocks all along, regardless of the warrant being exercised. That's why FnF report earnings on a diluted basis and the stocks trade at $2. Expropriation Venezuela-style.

2-Breach of the conservator's Incidental Power (take any action authorized by this section, in the best interests of FnF or the conservator) that contemplates the Fiduciary Duty owed to the shareholders, consisting of:

-Overpayments (10%/NWS dividend). It's a Duty of Loyalty breach: act in the interest of FnF (no self-dealing)

-Don't uphold his Power. It's a Duty of Care breach: take any action authorized by this section.