Replies to post #384241 on Fannie Mae-No Politics (FNMA)

[rekcusdo]

"Do YOU still feel the warrants will be exercised?"

I wanted to address this first. I don't believe the warrants will be exercised and Ive never believed they would be. I have said from the beginning that the warrants will NEVER be exercised because it would create a fiduciary relationship between the government and shareholders and they would never want that.

"What is your thinking on a resolution now? Still court or settlement or EO/ Congressional change?"

My opinion has slightly changed. I do believe that an EO can affect some of this...but not all.

[HERA is a legislative order that only the courts and Congress can affect. Trump had no influence there. The Conservatorship can only be ended by Watt. The warrants are a contract matter and will likely only be ended by courts determining the contract is invalid.] - these are the areas my opinions have not changed.

[The NWS still can be effected by court, but Trump could end it by EO as well] - this is where my opinion changed from only court helping.

I do still think court is our best bet. I still, as always, do not believe a settlement is possible. However, I think the possibility that the NWS could end from Trump has improved significantly.

"Finally, where do you think PPS will be by year end?"

That I cant answer unfortunately (or Id be a billionaire). :). Too many variables for anyone to give an estimate with any certainty.

[Steelhead9]

District Court is almost certainly waiting for something. My theory is that they are waiting for one of two things ...

1. New administration to act, which could rid them of the unpleasant task of overruling another judge.

2.To see what documents are unsealed in order to get more information on what was going on behind the scenes at FHFA & in the Administration.

If they were going to rule against us, number one would not be an issue because there would be no unpleasant overruling, They would simply affirm the ruling of a fellow judge. Posibility number two, in my opinion, would make them want to rule quickly if they were ruling against us. Why wait for potentially damning documents that would make your ruling appear ill-advised to came out, when you can rule quickly and have cover. If you rule quickly, you can say "Well had we HAD this information before we ruled, then OBVIOUSLY, we would not have ruled as we did.