Fannie Mae-No Politics (FNMA)

[Dallas66]

What makes the lawsuits more interesting, is not the number of lawsuits themselves...but the number and relevance of the people/groups behind those lawsuits.

AIG was considered tainted if you will. They created their own crap bucket and jumped right in. The FED bailed them out and the general public had little sympathy for them. In the case of FnF...the lawsuits are brought by very highly regarded and respected entities that are suing to recover/preserve their investments.

I suspect we will see more suits filed and I believe the FED will eventually bow to the pressure and allow for them to recover their investments in some way.

I see that way as eventually morphing FnF into something that has a viable backing by the FED to some degree, along with the hybrid thought of private monies supporting the majority of the new FnF. I also think it will be years away before it happens.

Would be outstanding to see the large funds that have bought up the junior preferred to the tune of billions invested come out and approach the FED with a detailed and plausible restructure that allows for both the junior preferred and commons to retain value and carry over to the new entities.