Fannie Mae-No Politics (FNMA)

[kthomp19]

Fact is Government CAN do whatever they want here. There is / are / nor have been any restrictions and the law and judicial findings are on their side.

Wrong. The Supreme Court said that 4617(f) does not bar judicial review of actions FHFA takes that are beyond its statutory authority. From page 19 of their opinion:

We agree with that consensus. The anti-injunction clause applies only where the FHFA exercised its “powers or functions” “as a conservator or a receiver.” Where the FHFA does not exercise but instead exceeds those powers or functions, the anti-injunction clause imposes no restrictions.

FHFA wiping out the juniors for no (or little) return consideration would be an effective repudiation of the juniors' contracts. FHFA's authority to do so under 12 USC 4617(d)(1) expired long ago, so a lawsuit over that would not be subject to 4617(f) which is what the Supreme Court used to toss the APA claims regarding the NWS.

but preferreds could be as screwed as commons

Possible, but only through receivership.

and frankly, worse, because they mistakenly thought they were protected and they are simply not.

Saying "worse" betrays ignorance of the capital stack and its ramifications. If the juniors somehow lose, the commons must lose at least as hard.

You are completely and absolutely 100% wrong.

You gave empty generalities, I gave specifics. You lose.

That is the reality.

Nope, just more wishful thinking.