Fannie Mae-No Politics (FNMA)

[ralph4]

"Both individual investors and large financial institutions have challenged the modified bailout agreement through a series of lawsuits with the hope of recapturing some value. Several of the law suits include the Berkowitz Group in federal court of the District of Columbia, the Police Retirement System of Austin, Texas, and a bank from the state of Washington, Perry Capital, one of the largest U.S. hedge funds invested in the GSEs.

One possible solution, which seems remote, is for the government's preferred stake to be converted to common shares, as was successfully done as part of the epic bailout of American International Group (AIG). That bailout resulted in a profit to the U.S. taxpayers of $22.7 billion dollars."