Fannie Mae-No Politics (FNMA)

[DaJester]

"because the 3rd Amendment was done in bad faith and unfair dealing, and removed ALL economic value to the shareholders, the 4th Amendment, by transferring a Liquidation Preference to the US Treasury each quarter equal to the shareholders profits doesn't hurt the shareholders "

The answer to this should be obvious. Any previous bad action does not absolve anyone from future bad action. Just because a company gives away all it's profits once, doesn't mean - "oh well then the shareholders don't have any reasonable expectations that it won't happen again." This is not how the breach of implied covenant works. If one party takes action that prevents the other party from realizing the fruits of their side of the contract, then there is a breach of (implied) contract. This isn't about a person's expectations, it's about contractual obligations. The stock contracts between shareholders and FnF are not updated to reflect that as of xxx date, they can no longer be expected to receive a share of profits. It's implied in the shareholder agreement that as part owner, you are entitled to the rise/fall of the rewards of the company. To give all the profits away is a breach as it invalidates the commitment to shareholders. No matter if it's the first time, second time, or 4th amendment.