Fannie Mae-No Politics (FNMA)

[Rodney5]

Why is Lamberth delaying? Could it be the settlement with the shareholders will reveal if “phantom shares” exist, counterfeit shares?

What happens when the shareholders find out their shares possibly do not exist?

Failure to deliver is critical when discussing naked short selling. When naked short selling occurs, an individual agrees to sell a stock that neither they nor their associated broker possess, and the individual has no way to substantiate their access to such shares. The average individual is incapable of doing this kind of trade. However, an individual working as a proprietary trader for a trading firm and risking their own capital may be able. Though it would be considered illegal to do so, some such individuals or institutions may believe the company they short will go out of business, and thus in a naked short sale they may be able to make a profit with no accountability.

Subsequently, the pending failure to deliver creates what are called "phantom shares" in the marketplace, which may dilute the price of the underlying stock. In other words, the buyer on the other side of such trades may own shares, on paper, which do not actually exist.

https://www.investopedia.com/terms/f/failuretodeliver.asp