Fannie Mae-No Politics (FNMA)

[clarencebeaks21]

Quote: “Yet we have contract rights in our shares? FHFA can vote our shares for us?”

Yes. But. The question of whether doing so would support a shareholder legal claim is IMO an unsettled one. The USG wants to name its haircut JPS price but prefers more leverage in the form of further rulings barring the front door (to name the “4–dog defense”: standing, failure to state a claim, HERA succession, and HERA anti-injunction). So they can just wait. IMO until a Fairholme-esqu case a survives a *final pre-trial dismissal motion*, the odds for Ps remain stacked. But I am rooting for Ps.

Now momentarily set aside HERA. There is also a ‘5th dog’: and he bites. Courts have a settled doctrine in federal takings of contract rights cases that is nearly impossiblr (the ‘4th branch’ makes its political living in large part by being empowered by Congress to interfere with third party contracts and rearrange private deals—all in ‘public interest’. Very common. If you want some related links lemme know.