Fannie Mae-No Politics (FNMA)

[kthomp19]

Familiar and incorrect. When the GSEs are released, which they will be eventually, we will see what residual value remains in the common. I do not need to file a lawsuit to reap my share of the residual value. Time will tell us more accurately than a court document.

That's not at all what I was talking about. Only a court can settle our disagreement as to whether or not the LP ratchets in the 2019 and 2021 letter agreements were a breach of the implied covenant.

There is a vast difference between harm being done, and being able to calculate damage from that harm. Lamberth was only interested in what can be objectively proved in court as factual. There is no crystal ball of what "could have" been, therefore that harm is inadmissible. It doesn't mean it doesn't exist.

Why would any other court case be able to use counterfactual share price models? I'm not saying it's impossible, but given the precedent we have seen it sure seems like share price drop is the only real provable harm.

They could be - through some future action. But the current trending news is hinting at release with residual value.

In other words, speculative value. That's all either the juniors or commons have right now. No actual economic rights because those were removed by the NWS.

The LP ratchets didn't remove any economic rights because those were permanently removed by the NWS, and neither did they remove the speculative value because that clearly remains as evidenced by current market prices. Therefore the LP ratchets in and of themselves didn't cause any harm and they didn't breach the implied covenant.