Fannie Mae-No Politics (FNMA)

[kthomp19]

So what amendment or law went into effect that states a government agency can take over a company, give all the profits to another government agency, and not compensate the owners of the property?

The Supreme Court said this was okay in two different ways:

1) By denying the APA claims in the Collins case.
2) By denying cert in the NWS takings cases, effectively upholding the CAFC's ruling that the NWS was neither a direct nor derivative taking.

Answer: none.

The Supreme Court disagrees. If you don't like that, see my first signature line.

Therefore, the reasonable expectation STILL EXISTS that a shareholder can and should be able to reap in the rewards of the company.

No. Not anymore.

What you keep getting wrong is this: the 2012 NWS completely extinguished the possibility of any future economic gains for common and junior preferred shareholders. That is what violated the implied covenant. The 2019 and 2021 letter agreements cannot further extinguish what had already been completely extinguished. The jury award was to compensate shareholders for the complete extinguishment of their economic rights by the 2012 NWS. A similar award for the letter agreements would be double-dipping.

To get a judge to allow an implied covenant claim over the 2019 and/or 2021 letter agreements to go to trial, you would have to show that those letter agreements caused shareholders harm beyond the harm done by the 2012 NWS. But how can shareholders be more harmed than complete extinguishment? Good luck getting a judge to agree with you, assuming you even file your own lawsuit.