Replies to post #354426 on Fannie Mae-No Politics (FNMA)

[chessmaster315]

We know, BIg Yank. Anyone who disagrees with you is garbage. Well, Im one of the "deplorables" spoken of by Hilary Clinton, which is anyone who disagrees with her.
Apparently Hilary and Billary dont get along all that well, either, after all, at least not in the bedroom. So, Bill must also be one of the "deplorables".

You stated there was no such offer, and, only when I provided the link did you "attack" the fairholme offer as not credible.

As I explained, 52 billion dollars, offered by Fairholme, amounts to about $47 per share, considering 1.1 billion common shareholders. The issue of preferreds was not brought up, but, as I have explained over and over to you, Fannie Mae Preferreds are not cumulative preferreds, so preferreds do not have precedence over commons for the 2008 - 2016 period when the government stole all the dividends, common and preferred.

When fannie mae is restored and released, the preferred shareholders will not be getting "back dividends" from the eight year period in governement theivership, because preferreds are a "non cumulative" class of stock. There is a class of stock, called cumulative preferreds, where, when a company "misses" a preferred dividend, the preferreds get paid next "back dividends", that is, the dividend preference is cumulative, but FAnnie has no cumulative preferred stocks.

However, Fannie's preferreds all clearly state "non cumulative preferred", which means those potential dividends from all those years of government thievery wont be returned to preferred, non voting shareholders, but, instead, to common shareholders who vote and vote with common shareholder interests in mind, not preferred.

[Zmarzz]

I do not think the litigation will ever end and here's why:
1) We will continue to see a steady release of government documents that undercut the legal position taken by the federal government in court. We still have many, many thousands of documents to go.
2) We have an enormous number of extremely wealthy people in this country who could easily afford to litigate this matter. If you can buy $1 billion in preferred shares for $100 million, and then risk an additional $5 million in legal fees, the upside is a NINE HUNDRED (900) percent return, plus any dividends that you might receive. The downside is $105 million, which can be offset against any capital gains you might have.
In other words, over time, the legal position of the claimants should improve, and with a risk/reward ratio of 10:1 or better, I think we will see lawsuits filed well into the future.

[navycmdr]