Fannie Mae Preferred S (FNMAS)

[44centsAKAchoccake]

It's shameful that Jules Joskow's grandson would write something like this. http://www.slate.com/articles/business/moneybox/2013/11/fairholme_housing_finance_plan_a_34_billion_giveaway_masquerading_as_private.html

FnF haven't been nationalized, shareholders and preferred holders haven't explicitly been expropriated. The 5th Amendment due process and takings clauses continue to apply. The "bailout" did keep mortgage capital flowing but shareholders and preferred holders need not be punished for this. FHFA and Tsy's August 17, 2012 3rd Amendment accelerated the repayment of taxpayers "net investment" but amounts to a taking if it continues much longer. Conservatorship should not be the same thing as expropriation. Even Argentina is going to pay shareholders something re the Repsol nationalization. The U.S. should do the same.