Fannie Mae-No Politics (FNMA)

[kthomp19]

Eliminating the nws with the LP going to zero would be a big leap forward to getting the government boot off our necks, especially compared to where we are now, which is total Nationalization by the government. I'm thinking that the most likely outcome is MC removable at will, nws voided since it is an ultra vires act and in violation of the APA, and remand to the 5th for damages. Some clarification from the SCOTUS on the anti-injunction and Succession clauses would be nice as well.

I agree on all counts.

I think the longshot Bulldozing of hera would effectively eliminate the abusive and coercive Governmental overreach and would address the 12.75 year, never ending, "temporary conservatorships" of the gses' by eliminating the fhfa entirely and putting the parties in the position they were in prior to September 6th, 2008, with the regulator reverting back to OFHEO.

Maybe. But the OHFEO's governing statute (the Safety and Soundness act of 1992, before it was amended by HERA) gives it very similar powers to FHFA in terms of the succession and anti-injunction clauses, as well as the ability to appoint itself conservator given the consent of the boards. I don't think this bulldozer approach would change nearly as much as some think. For example, Calabria as reverted OHFEO director could ratify the original SPSPAs, leaving them in force.

If BA is bankrolling this Litigation and he still owns 5 to 10 percent of the common, wouldn't it maximize his returns to have the common do well and he would be reluctant to throw the common under the bus, as your constant stream of posts always suggest?

1) Ackman is 20% prefs. If those gain enough, probably via conversion at a generous ratio, he can afford for the commons to not go to the moon and still make a good return. Don't act like Ackman not doing everything possible to maximize the return on his commons and "throw[ing] the common under the bus" are the same thing. He's not one to let the perfect be the enemy of the good.
2) Ackman wants Treasury to exercise the warrants. He realizes that having Treasury's incentives aligned with his own is the best way to make money. He thinks warrant exercise helps the existing common.
3) Ackman, for whatever reason, only challenged the NWS in his lawsuit, as opposed to going after anything from 2008. Therefore he implicitly disagrees that getting anything from 2008 overturned is somehow a pot of gold at the end of the rainbow.