Replies to post #15646 on Fannie Mae Preferred S (FNMAS)

[rosen62]

I am also adding this...

This bill (Delany Bill) was introduced mid July. It has 13 co-sponsors already. It's not dead and perhaps it revives right after November. It is the only bill that deals directly with the SPSPA's:

(5) RESTRUCTURING OF SPSPA.—The receivership shall provide for the restructuring of the Senior Preferred Stock Purchase Agreements entered into between the Department of the Treasury and the enterprise on September 26, 2008, as amended and restated thereafter, to—

(A) permit the redemption of senior preferred shares of the Department of the Treasury;

(B) provide for the cancellation of the warrants for the purchase of common stock of the enterprises issued to the Department of the Treasury; and

(C) provide for the appropriate level of compensation to the Federal Government for the financial support and commitment provided to the enterprise.

It

1. cancels the warrants.
2. Allows redemption of Sr. preferred shares.
3. Compensates "appropriately" the government, as in "thank you"

And allows both companies to be sold, recapitalized and restructured without a charter and as a reinsurer.

Here is a good article about it:
Partnership to Strengthen Homeownership

We are totally focused on the lawsuits and forgetting the most important thing when it comes to our shares: Congress. Lamberth said so!