Fannie Mae-No Politics (FNMA)

[kthomp19]

When the appeals court issues its ruling they can concur that a nationalization occurred and there was no foreseeable economic value due to the taking that occurred either in 2008 or 2012 with the NWS.

Which appeals court? Fifth Circuit, Federal Circuit, or some other one? And which specific case(s) are you referring to?

Also, if an appeals court "concur[s] that a nationalization occurred", they would presumably be concurring with that same finding by a district court. Which court, and in which case?

Believe it or not, I'm not trying to nitpick here. I just need some clarification, because the remedies available are different in different courts.

Do the shares need to be halted for a nationalization to occur?

Yes. Part of the definition of nationalization is that the government has both de facto and actual ownership of the companies. While the NWS did remove all economic value from the existing FnF shares, it is possible that economic value could be restored later. In fact, that (the fourth SPSPA amendment) is exactly the basis on which the Supreme Court denied prospective relief.

A nationalization is not similarly reversible. If a government ever re-privatizes a company it is to entirely new shareholders. Receivership would be a path to nationalization, but not the current setup.

It's not up to the government it's just a matter of law and the terms of the agreements where Treasury owns 100% of the liquidation preference. Those shares cannot be sold to private parties.

Extinguishing the shares and removing their economic value are two very different things.

The charters are meaningless if a full blown nationalization occurred.

I agree, but to me that means that since the charters are still in effect then a nationalization has not occurred.