Fannie Mae-No Politics (FNMA)

[Cynic-Al]

This lawsuit is not a "game changer" like some are saying on this board. These organizations realize the government will not release FnF and the only way out is through the courts. FnF fate will be in the hands of the court. Hopefully we get some real news soon because it's not even worth it to scalp trade FnF anymore. I hope PPS goes up but I'm realistic. It's not going to shoot up again until we get some real news on the c-ship or another huge quarterly profit.

http://online.wsj.com/article/SB10001424127887323949904578537994000684874.html
"While shareholders have filed unsuccessful lawsuits challenging aspects of the government's conservatorship of Fannie and Freddie in the past, Monday's suit is believed to be the first to challenge the most recent amendments to the government's bailout arrangement.

Investors have argued in recent weeks that the shareholders—particularly those who own preferred stock with a face value of $33 billion—should be able to share in any profits that exceed the amount the government has injected into the firms. That argument hasn't won any support so far in Congress and isn't backed by the Obama administration, leaving a legal challenge as perhaps the only way for investors to seek a payday if Fannie and Freddie are able to pay back the government and recapitalize themselves."

http://washpost.bloomberg.com/Story?docId=1376-MO72916S972N01-5AOJN48HIO31P1F4PDR91UKE4C
"Hedge funds including Paulson & Co. and Perry Capital, which have invested in the preferred shares, have been lobbying Congress to consider allowing Fannie Mae and Freddie Mac to become independent again. Republican and Democratic lawmakers and President Barack Obama have called for both companies to be liquidated.

“It’s probably dawning on some of these investors that the political branches of government aren’t going to provide them with any relief,” said Jeb Mason, a partner at The Cypress Group, an investment consulting and research firm based in Washington. “The courts are sort of left as the one potential avenue for success.”"