Fannie Mae-No Politics (FNMA)

[familymang]

So you are saying that the jps liquidation preference disappeared during the conservatorship?

I didn't say that? But the Lamberth claim is that JPS liq. and div. preferences were vanquished after the NWS (not during conservatorship), since the NWS made it so the treasury received the net worth of the assets of the entities, leaving 0 possibly of liquidation or dividend value left for JPS holders.

Is it not true that in the event of receivership/liquidation the jps holders would be entitled to any proceeds after assets are liquidated (seems unlikely given they are the backbone of the US Secondary Mortgage Market) less outstanding liabilities?

In a receivership correct, but due the ballooned balanced of the snr pfds there would not be much value left over if any today for shareholders.

Are you not assuming that but for the transfer of the $308B cash sweeps from the gses assets to the coffers of the UST, the jps holders would have received full or partial dividends since August 17,2012?

We could have potentially started to received dividends at some point in the last 10 years as the GSEs dividends well exceeded the original 10% dividend commitment, but the NWS closed off any potential of that occurring regardless.

Does it really seem like a legendary Judge like Lamberth wants to figure all these things out or will he punt again as the federal courts seem to have taken with the shareholders with yet another pyrrich victory for the beleaguered nationalized shareholders?

Luckily for us we don't have to wait long to find out the answer to this question as it is right around the corner.