Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

The fallacy here is acting like Treasury exercising the warrants is either theft or expropriation. It is neither,

The fallacy here is (a) actually thinking that the strong armed takeover by Paulson of the Board of Directors was justified and (b) that the US Government did some type of favor for the gses when in fact they wanted to Nationalization them from the beginning!

Their true purpose was crystallized in 2012, after the US Government realized that even a 10% annual dividend on the $187.5B was NOT ENOUGH TO SALT THE EARTH WITH THEIR CARCASSES, HENCE THE NWS. The $187.5B, was itself concoted by highly questionable and overly aggressive accounting entries mandated by the government to maximize the 2013 and subsequent cash transfers to the UST.

MANY WILL CLEARLY BENEFIT FROM READING TIM HOWARDS AMICUS BRIEF IN THE COLLINS CASE.

What Bill Ackman said and the Collins Plaintiffs mentioned at one point in posturing during the initial stages of litigation can change during subsequent litigation proceedings, in final negotiations if any with the UST, during any trial, and what they ask the court for when it is drafting any final court orders.

Lastly, few investors will be interested in putting new money into a corporation where the UST has a warrant for 79.9%!

Many of our friends should seriously consider having 2 horses in this race NOT ONE!