Replies to post #438009 on Fannie Mae (FNMA)

[bcde]

"No court has ruled the warrants illegal? None? How come nobody has challenged them? "

FnF are very complex cases, involving extensive abuse of bureaucratic authorities against private shareholder companies during 2008 and afterwards. You should read CADC Judge Brown's minority opinion to understand these abuses and violations.

If you looks at the plaintiff's complaints since 2012, the complaints have changed to include more and more serious violations. The cases started with APA, common law, constitutional taking and NWS and now cases have grown in to constitutional violations. This is because 1000s of documents were hidden from plaintiffs and the extent of bureaucratic secret cover-up was not known earlier. Forensic accounting fraud analysis was done later to prove that FnF never needed none of the bailouts of SPSPA and NWS.

So one can not predict how things will turn out in the end. If courts rule that FHFA conservator and Tsy owe fiduciary duties and public accountabilities to various FnF stake holders, then SPS and warrants etc... will be subject to due diligence and due process tests under various US and State laws.

Since 2008, under both Bush/Hank/Ben and Obama/Tim/Ben, unaccountable FHFA has totally abused its authorities. So do not hold high hopes that warrants are legal. Even otherwise Tsy has to treat FnF equally like banks when it comes buying back warrants. The buyback price depends on many factors and in case of FnF it very favorable because Tsy has made huge profits from FnF at the cost of the companies and shareholders.