Fannie Mae-No Politics (FNMA)

[clarencebeaks21]

“My main questions are: can the juniors' contracts be bypassed if FnF continue in their current corporate forms (i.e. no newcos)?”

Kthomp have you considered the doctrine of efficient breach? Just curious. In principle this can give a Board the leverage necessary to force a change in the par value. The action does not run afoul of the fiduciary duty of good faith & loyalty provided it is made in good faith and supported by economics.

So I don’t know that JPS could be bypassed entirely. I think to do that under this doctrine, the Board would need to show convincing justification in economic terms.