Fannie Mae-No Politics (FNMA)

[kthomp19]

At the time of the taking, the PPS was low. The shares dropped the next day and went up and down.

It seems that you are referring to the imposition of conservatorship in 2008. Is that right?

I'm referring to the potential (and probable, in my opinion) drop in share price from the day before Treasury converts the seniors to commons to when the putative lawsuit is filed. That would be the only quantifiable and provable damages eligible for a takings award.

The value that was taken was the RV and the missed dividends. Many are not just saying $50 (or $25) RV, but also the missed dividends since 2012 or since the 10% moment or whenever.

I was only referring to a takings lawsuit filed over a senior-to-common conversion. That wouldn't have much of an effect on the juniors at all. In fact, I would expect the juniors to skyrocket in share price because they would be at the top of the equity portion of the capital structure.

You say it's a drop in the bucket.

Yes, because Treasury is only liable for the drop in share price of the commons. With the commons trading under $1, the most value they could possibly lose is a little under $1.8B. That's rather little compared to what Treasury would stand to gain by selling the converted shares.

Common is harder to figure out, but it is not the value then that was taken - because all assets were devalued, but what the assets are worth now.

What the government gains means nothing in a takings lawsuit. Only what the property owner lost matters, and in the case of publicly traded shares, the market price provides the best (and only, in fact) measure of loss in market value.

They stole companies and claims to the companies.

They didn't steal pieces of paper as you seem to think.

"Stole companies" is not a cognizable legal claim that I am aware of.

Once again, I am referring to lawsuits over a senior-to-common conversion. Those wouldn't really have anything to do with actions that took place prior, including these "thefts" you refer to.