Fannie Mae-No Politics (FNMA)

[clarencebeaks21]

“…I think it wouldn't even be as difficult as you say. FHFA, and by extension the boards (while FnF are in conservatorship) has no fiduciary duty to shareholders.”

Agreed.

“The protection against something like this is supposed to be the 2/3 clause in the juniors' contracts, which say that any change to the contract which "materially and adversely affect the interest of the holders of the Preferred Stock" must be approved by 2/3 of the holders. Are you suggesting that this clause can be legally circumvented by the doctrine of efficient breach?”

Yes IMO the doctrine supplies a principle for FHFA to use to deploy a circumvention.