Fannie Mae-No Politics (FNMA)

[kthomp19]

is there an implied breach of good faith (simliar to lamberth) lawsuit open for fannie common shareholders?

No.

Would lamberth's damages model be precedent or is there a chance to get something more reasonable?

Neither. One of the plaintiffs' lawyers said that FNMA holders were not included because of some clause in their contract that prevented them from bringing breach of implied covenant claims. That would mean FNMA holders cannot get anything at all, even from a future lawsuit, as a result of the jury's verdict.

That's why I said earlier that unless you have tax considerations to take into account, there is no reason to own FNMA right now at all. Selling it to buy FMCC makes perfect sense, especially if you can do the trade at a premium.