Fannie Mae-No Politics (FNMA)

[cate]

Bloomberg asks Millstein:
"Do you think its unwise for Berkowitz and Ackman to
'go against the government' on these bets?"

Millstein:
"NO, because at the end of the day the thing that distinguishes
the US from other countries in this world is that we have a tremendous respect for the Rule of Law.

And these guys are making investments that are based on the predictable outcomes in the american insolvency system. And there are lawsuits out pending challenging some of the things that the Treasury Dept and FHFA did in 2012 that radically altered the Usual Rules of the game in american restructuring and insolvency.

They are essentially making a bet in part on the outcome of those lawsuits, hoping that the court system will reverse what the Treasury Dept and the FHFA did perhaps without thinking fully through the consequences of their actions."



$FNMA$