Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

"A maximum of 79.9% of all shares was chosen in consideration of an accounting rule that
would require the federal government to take the GSEs onto its balance sheet if it
acquired a stake in them of 80% or more. Jester et al. (2018) have insisted that, absent
this rule, the authors, who served as financial regulators and designed the SPSPAs during
the crisis, would have sought to give taxpayers full ownership of the GSEs. The authors
opted for warrants to purchase only 79.9% of all shares, however, because they believed
that the risk of “adding trillions of GSE debt and guarantees to the federal balance sheet”
far outweighed any potential benefit of owning an additional 20% of shares (Jester et al.
2018)."

Source: Bottom of pg. 339, The Journal of Financial Crises
Volume 3 Issue 1
2021
The Rescue of Fannie Mae and Freddie Mac-Module B: Senior
Preferred Stock Purchase Agreements
Daniel Thompson
Yale University

Louie, it looks like this was da gubmints game plan, Nationalization of the gses, which the SCOTUS said was within their authority as a Conservator under HERA. But it doesn't prevent the shareholders from suing for a Takings of their property under the 5th Amendment!