Replies to post #406030 on Fannie Mae (FNMA)

[rekcusdo]

"There is very little difference between a bankruptcy and conservstorship. Don't let the semantic difference confuse you."

Wow, I can't believe you just said this. This is a completely insane statement to make.

Bankruptcy - Chapter 11

Bankruptcy suspends ALL debt collections and judgments.

After a bankruptcy is filed, the company has 120 days to restructure the company.

If the company does not restructure the company, they must begin to immediately sell off all assets.

Once all assets are sold off, the company must wind up operations and cease to exist.

Conservatorship - HERA

The Conservatorship is defined by HERA 1367 (b).

Conservator succeeded to shareholder rights.

Conservator is mandated to operate the company in a sound and solvent manner.

Conservator does NOT have the right to liquidate unless the Conservatorship is terminated and a Receivership is instituted.

These two concepts are practically complete opposites and you claim there is "very little difference". HYSTERICAL!

"In bankruptcy, the court is even called "the conservator"."

I understand you may have little understanding of Conservatorship, but there are many types of Conservators.

Example...Conservators in Wills - A conservator is usually named in a last will along with a guardian for any minor children that the person making the will leaves behind.

Would you also claim that there is little difference between a Conservator in a Will who has been named to care for a child as there is to a bankruptcy just because they both use the word "Conservator"?

The Conservator type here is clearly defined by HERA and it is WAYYYYYYY different than a bankruptcy.

"The goal of chapter 11 and government conservstorship is the same; to preserve and protect the assets until they come to a conclusion on what to do. "

Another incorrect statement in a slew of incorrect statements. Conservatorship can only conclude by a termination of the Conservatorship, but the company still exists when a Conservatorship ends, even if it ends because the company enters Receivership. A Chapter 11 Bankruptcy can end with the company existing (restructure) or not existing(wind up). Therefore, they do not serve the same goal.