Fannie Mae-No Politics (FNMA)

[kthomp19]

Federal Circuit which oversees the COFC.

Okay, that clears things up.

Why would they be different? As far as I know only one court initially hears cases and controversies against the government for a takings. That final ruling could affect other cases in other courts.

When I said "different courts", I didn't mean the USCFC and the Court of Appeals for the Federal Circuit. I meant those two together contrasted with the DC District Court and the Court of Appeals for the DC Circuit.

The former two courts encompass all the takings and illegal exaction claims under the Fifth Amendment. The latter is about the breach of contract claims, at least when it comes to the NWS.

My main point here is that the USCFC has not been asked to rule whether or not a nationalization has occurred. They are just being asked to determine if the government has taken actions that require a payment to shareholders or the companies, and if so, in what amount.

So you are saying there was no nationalization. Then what was it? A re-nationalization? An exaction? A breach of implied covenants?

Correct, I am saying that an actual nationalization has not occurred.

The NWS was a taking (because it's legal, as the Supreme Court ruled) as far as the USCFC/appeals is concerned. It was a breach of the implied covenant of good faith and fair dealing as far as the DC District Court/appeals is concerned.

Extinguishing shares is just a process. Not sure it means anything if there isn't any economic value due to the shares.

Extinguishing the existing common and junior pref shares would mean that FnF are no longer shareholder-owned companies. This is a meaningful difference, from the point of view of the charters, from the shares merely having no economic value.