Fannie Mae-No Politics (FNMA)

[NeoSunTzu]

8-0 verdict: It is almost a certainty that if the corrupt element controls the outcome of the GSEs they will claim the 8-0 verdict and associated monetary award fully compensates shareholders and they will move on with their plan of some kind of cramdown and capital raise - AGAIN, that is if the corrupt element comes out on top behind the scenes. BUT two elements will make this problematic for them:
1.) Fannie Mae was not a part of that suit
2.) Pershing Squares' large common holdings.

A lot of people bash Ackman for a number of reasons, I'm not here to argue any of those in favor or in his defense. The fact is the presence of a very large shareholder will mean there is a party with very deep pockets who will have the full history of this mess at his disposal and better lawyers to fight it - especially Ackman because he won a case very similar to this that went to bankruptcy and his shareholders made out like bandits.