Fannie Mae-No Politics (FNMA)

[kthomp19]

Because it's not their companies or property to limit.

Perhaps in your mind it shouldn't be, but in the eyes of the courts it is. The DC Circuit Court of Appeals dismissed the takings cases over the NWS, saying (page 46):

And, as Collins explains, HERA gave the FHFA
very broad authority, as conservator, to act in ways that
are not in the best interests of the Enterprises. Collins,
141 S. Ct. at 1776. As of at least 2008, then, the Enter-
prises lost their right to exclude the government from their
property, including their net worth. They also lost the
right to complain if and when the FHFA chose to elevate
its interests, and the interests of the public, above the in-
terests of the Enterprises. Without this right to exclude,
the Enterprises lack any cognizable property interest on
which Barrett may base a derivative Fifth Amendment
takings claim.

In my opinion it was an utterly stupid an incomprehensible opinion. But the Supreme Court denied cert so this opinion stands. It's a bitter pill to swallow but it's reality.



This was a shorter post so let's get back to what's important: estimating the future common share price. What is your expected value calculation? You said that you have run many scenarios so it shouldn't be difficult to post their output.