Fannie Mae Preferred S (FNMAS)

[rosen62]

For decades, private investors benefitted from the pseudo privatization of the GSEs and reaped enormous returns for essentially doing nothing. Now those shareholders who were too dumb to head for the door when the music stopped want to be made whole for their losses.

What is he talking about? Investors in FNMAT only enjoyed one distribution! And they came in when the music was stopping only as a form of rescue, enticed by the then Sec. of Treasury. And that one distribution got paid during c-ship only because it was declared prior to it. So FHFA agreed to honor it.

Most of what is in the article is emotional, ideological discourse with little research based on nothing.

What the author got wrong:

1. It is not about being "unfair". This is about being illegal.
2. Treasury is not accountable to Congress. Neither the GSEs while in c-ship. It is in fact the conservatorship that is shielding the GSEs against Congress action. There are only two players while c-ship lasts: FHFA as the conservator and Treasury. And the PSPAs that regulate their interplay.

The author has not done thorough DD and has low IQ.