Fannie Mae-No Politics (FNMA)

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So the crucial question is what is more important: the welfare of the legacy shareholders or the welfare of the two companies? The government will certainly argue for the second (also out of self-interest, because there will be $20 billion more for them in a SPS conversion, compared with warrants exercise alone).

It’s been proven that the government (FHFA) has and will continue to self deal. With that, FHFA can no longer be trusted to make the right decisions regarding an exit from c-ship and the future of the GSE Shareholders. They simply, like the fellow travelers, are rogue.

The deal was made with Treasury was wrong and the Supreme Court got it wrong (IMO). FHFA have been fabricating misinformation to make their own case. How? By roiling on the coattails of those who trumped the law without regard to shareholder’s rights to a share of profits for the last 15 years.