Replies to post #288855 on Fannie Mae-No Politics (FNMA)

[Stockman1010101]

It does not matter what you call it. These 2 companies are under government control. The shareholders have no say or control on these companies policies. All profits are stolen and given to Treasury. Shareholders get nothing. Its been publicized in SEC documents and many PRs. Conclusions, FNMA/FMCC stocks are speculative at best now. If Cos get released from conservatorship then we are talking about shares being worth $80 or even $100. That could happen in the future, it would take our government not to be so greedy and realize they are violating the constitution. Mr. Ackman said eventually they will come to their senses. But that might be after they have milked this FnF cow for a long time. Sucking the life out of these companies. Law suits need to proceed efficiently and effectively and not drag their feet. The longer they take to resolve these case the more investor's money and tax payers money is being wasted. The only people enjoying this game are the lawyers getting paid to do nothing and resolve nothing. Judges seem to think they can take 5 years to conclude these cases. Bull or bear that is how I see it now.

[Markus45]

Conservatorship - Receivership

Hi Zephadiah, thanks a lot for the two links.

If we read carefully then we see the danger:

"...the director may appoint a conservator (or receiver) in cases of insolvency, undercapitalization, operating in an unsafe or unsound condition..."

Take special note: "undercapitalization"

"...However, assuming a statutory ground exists and the Director of FHFA determines that the financial condition of the company requires it, the Director does have the discretion to place any regulated entity, including the Company, into receivership. Receivership is a statutory process for the liquidation of a regulated entity. ..."

Here we can see the problem with the situation that Fannie and Freddy are not able to recapitalize. The FHFA can put the companies in receivership and wind them down. I think this danger is vital and we should keep this in mind.

Thanks again for the two interesting links