Fannie Mae-No Politics (FNMA)

[kthomp19]

God it's hard to type while laughing this hard.

Thinking that this "plan" (which is really just a wish list) has any chance of being implemented by the same governmental agencies that got his lawsuit dismissed (among many, many other things) is utterly incomprehensible.

It completely papers over the fact that many, perhaps even most, of the shareholders that were mistreated along the way have sold their shares. This "plan" does nothing whatsoever to make them "whole" (whatever that even means), which greatly enriching people who bought shares long after the government's misdeeds were perpetrated. That might be the way things work legally but such a "plan" is 100% morally bankrupt.

It also ignores the fact that converting the juniors to commons, rather than redeeming them for cash, is thirty-three billion dollars better for FnF with no drawbacks to the companies.

Saying that Treasury exercising its warrants is "at the expense of the two firms" is utterly wrong. If anything, it helps the companies because it clears one obstacle that prevents them from raising capital.



Don't get me wrong, I would totally take this plan over the status quo. 100% face value on the juniors is what I hoped to eventually get when I bought my shares. I would also take a check for several million dollars from the Treasury Department. Each has the same chance of actually happening.