Fannie Mae-No Politics (FNMA)

[kthomp19]

A. The Illegal Exaction Claim

It's ironic that you bring this up.

1) It signifies a direct contradiction to the "FnF are not AIG!" crowd. If there are no parallels to be drawn then the Starr case doesn't matter. If there are, then Treasury's eventual 92% stake in AIG becomes relevant.
2) The illegal exaction finding was overturned on appeal so it isn't even precedential.
3) Wheeler's opinion was based on the Federal Reserve Act, which didn't allow the Fed to take an equity stake, while Treasury's purchase of the FnF seniors was based on HERA, which specifically did allow such purchases.

Under New York Stock Exchange Listed Company Manual Rule 312.03 ...

This is irrelevant because FnF's warrants weren't issued until after FnF were in conservatorship, and at that point FHFA had succeeded to all shareholder rights.