Fannie Mae-No Politics (FNMA)

[kthomp19]

Do you think the UST could be enjoined from implementing a cramdown if the SPS is still in place after SCOTUS?

Only if a new court case asks for this remedy, and does so before the cramdown occurs. If Treasury does cram down the seniors and sell the resulting shares, unscrambling that egg will be impossible.

It's just like with the warrants: lawsuits over them, whether they succeed or fail, won't undo the dilution.

How can they justify issuing shares at $ 27.50 underwritten by the UST officials old employer just 60 days after the Barrons planted article and now cram down public shareholders?

The shareholder base now is far different than that in 2008. Any arguments you make about events from 2008, such as the Barron's article, only justify payments to shareholders of record in 2008, not current shareholders.

A cramdown of current shareholders would be perfectly legal and, given the low price at which the commons currently trade, a takings lawsuit over it would only cost Treasury a few billion dollars at most.