Fannie Mae-No Politics (FNMA)

[FFFacts]

Undoubtedly the scotus believes this is better off proceeding as a takings case. HERA was not challenged as unconstitutional as Lamberth ruled several years ago. Plaintiffs failed to challenge HERA itself which was the problem in the first place. There are 2 potential constitutional challenges 1. A taking under the 5th amendment and Article 1, Section 8, Clause 4 regarding bankruptcy. If I remember there are 4 tests under the takings real property, regulatory, contracts - trade secrets and easements?

The takings case is much stronger but the question is what is the remedy. The direct or derivative claim will be important. The remedy is not very clear but it could be larger if it is derivative because a direct claim would be dependent on share prices at the time of taking and the current prices. If it is a direct claim then effectively they can claim full blown nationalization and then pay little to nothing and boot shareholders forever. A derivative would be different in that the remedy would flow to the corporations but they would still survive but would essentially have no economic value because of the liquidation preference. At the end there has to be admin or legislative action.

I said it before plaintiffs attorneys screwed up numerous times. This could have been so easy.