Replies to post #446656 on Fannie Mae-No Politics (FNMA)

[bcde]

"Yeah but what does “reincorporated” mean? Watt said he doesn’t care about shareholders so reincorporated meaning is up for debate. It would be great if he said return to shareholders. "

These bureaucrats have arrogated themselves as masters and think that they are above the laws that apply to common people.

[positiveonstocks101]

I think re-incorporate is used in context of having these as regular corporations without the Federal charter..

[kthomp19]

Since the GSEs are already incorporated, "reincorporated" to me implies that there will be a capital restructuring. There is a crapton of uncertainty involved there which is why the commons have lagged in price.

[Sogo]

"Reincorporated"? Implies current "corporation" disappears, and new shareholders form the new corporation. I HOPE i'm wrong!!
But I posted on the same issue a couple of days ago, trying to parse the language we're hearing about restructuring, etc.

It occurred to me that even though a restructuring and/or reincorporation doesn't necessarily HAVE to screw the CURRENT common shareholders, the fact that current common shareholders have been so incredibly toyed-with, and so incredibly mistreated by frankly illegal actions, and they've continued to allow commons to trade in order to NOT force the GSEs' liabilities onto the US gvt's balance sheet, I think the likelihood is that current common shareholders will get screwed to some degree. I mean, allowing the shares to continue to trade after the '08 and '12 actions against the GSEs is/was, I fear, something that boils down to concern for the US gvt's balance sheet AS WELL as an effort to punish the shareholders. Yes, punish, because the GSEs were so much maligned by so many power brokers in DC for so long (decades). I think forcing them off NYSE and onto the pink sheets and letting them trade there is just rubbing their noses in it, or piling on. I think there seems to be actual hatred of current common shareholders amongst most power brokers, as well as the fact that the current common shareholders literally are standing in the way of the TBTF making more money.

[Pecker9Wood]

I don't recall the context or when or if he said that but I know that as steward of the conservatorship those actions would conflict with the charter and fiduciary duties. It is important too note that the government shouldn't deplete the twins resources that would result in them from being released of conservatorship. A husband or wife in the state of Ohio in the event one of them is placed in nursing home can not divorce the spouse in order to go on Medicare and avoid depleting the family wealth. This is true for up to five years prior when the condition has been on going.