Fannie Mae-No Politics (FNMA)

[kthomp19]

Dec 9, is the end game date. If the executive branch is going to do something it will be done before then.

I agree. In fact, I agree with most everything in this post except two things:

Do they want to take the risk that they have to contend with the costs of finding HERA unconstitutional?

I think this is a vanishingly small possibility. It would certainly have large and wide-ranging effects, though, so it is a possibility worth taking seriously.

I believe the gov will settle in a way that makes all parties happy without putting up too much of a fight that means including the warrants as well.

Why on earth would Treasury include the warrants in any settlement negotiations? No plaintiffs at all, let alone the Collins plaintiffs, want the warrants overturned.




If Collins is not settled by December 9 I will strongly consider selling all of my FnF shares because it would be a strong signal that the government doesn't actually want to do recap and release after all. The Supreme Court cannot solve this by itself; the administration must play ball.