Fannie Mae-No Politics (FNMA)

[kthomp19]

If this were true, neither you nor I should be invested in common or JPS.

Those economic rights can be restored if Treasury chooses to allow it. Anyone who owns either juniors or commons is banking on that happening.

It's also why I own the juniors instead of the commons: the juniors only need Treasury to convert or write off the seniors, though a writeoff is better. The commons have to have a writeoff.

The commons and juniors both trade like options. The juniors are a OTM call spread (with a $33B spread, equal to the total junior pref LP), while the commons are a pure call at the higher strike price of the juniors' spread.

This is not true. You would have to show that the agreement violates the implied covenant of the shareholder agreement. There is no criteria to compare it to any other harm.

The shareholder agreement is informed by all changes in law, regulations, and relevant contracts at the time of the alleged breach. That's what Lamberth said. A shareholder just prior to the letter agreement in 2019 or 2021 could only reasonably expect the status quo that existed just before the letter agreement to continue. That includes the 2012 full cash sweep NWS.