Fannie Mae-No Politics (FNMA)

[Ace Trader]

You Might find this interesting what the Trump Gov wanted to do with there 79.9%
https://www.dropbox.com/s/2izg8rncjgos87w/amended%20collins%20complaint%20upon%20remand.pdf?dl=0

SELL TO PRIVATE INVESTORS !! OH BOY WHOS FIRST IN LINE FOR THAT??? OUR FRIEND BILL ACKMAN THATS WHO

b.
In November 2016,
Mr.
Mnuchin
said the new administration wanted to
“privatize” the Companies
and that “t makes no sense that these are owned by the
governm
ent.”
Mnuchin: Get Fannie Mae, Freddie Mac Out of Government Ownership
,

Director
Calabria said he expected that
,
as part of a public offering of new
shares of Fannie and Freddie stock, Treasury would “sell off its shares to recoup the
Case 4:16-cv-03113 Document 80 Filed on 06/03/22 in TXSD Page 21 of 48
22
. According to Director
Calabria, a public offering “would allow
Treasury to exercise its [common stock] warrants to recoup its investment.”

61.
The statements quoted above reflect the fact that the Trump administration
intended to end government ownership of
the Companies by having Treasury exercise its common
stock warrants and
sell the
resulting 79.9% stake in the Companies’ common stock to private
investors.
But for Treasury’s common stock to be attractive to private investors such that it could
be sold for
a “huge profit” as President Trump intended, it was necessary to eliminate the
large
liquidation preference on Treasury’s senior preferred stock.
As detailed above, the Companies’
common stock has no economic value so long as
that
liquidation preference r
emains.
62.
Therefore, both Trump administration policy objectives necessarily required
eliminating the liquidation preference on Treasury’s senior preferred stock
—
either by writing the
liquidation preference down to zero or by converting Treasury’s senior pre
ferred stock to common
stock.
Treasury recognized as much in its
September 2019 report
, which
respond
ed
to the
President’s
March 2019
directive
and
listed ending the conservatorships as a top priority in
fulfilling the President’s mandate. In that report,
Treasury
recommend
ed
that the administration
consider
(1)
“[e]liminating
all or a portion of the liquidation preference of Treasury’s senior
preferred shares”; or (2) “exchanging all or a portion of that interest for common stock or other
interests” in the Companies.
2019 Housing Reform Plan
,
supra
,
at 27