Replies to post #467308 on Fannie Mae-No Politics (FNMA)

[JosephS]

The lawsuits do no harm to the shareholders. In fact, they do the opposite. They encourage the government of treating the shareholders of equity (common/preferred) fairly.(much more so than without)

If the government offered a settlement that was fair, the shareholders would surely agree.

Totally disagree with that assertion as it is clearly false.

The lawsuits have been around for 5 years. They didn't just get filed. Even if they had, the assertion makes little sense.


Not a recco

[JosephS]

The utility model is likely less desirable than Moelis for common share appreciation. But, whatever. Doesn't matter that much to me.

[bradford86]

"The problem with Moelis is the impact on government-held warrants"

statute of limitations

not a problem

[kthomp19]

The timeline can't go too far off the rails given that Watt's term ends on January 1 2019.

But Trump's economic agenda is under a lot of duress and I think Secretary Mnuchin is going to grab for the outcome that favors him best. That would not be Moelis but the FHFA/Dworkin version of utility structure.

The warrants allow for much quicker realization of value than a utility structure, especially one that involves recapping only using retained earnings, keeping the government "on the hook" in the meantime.

[action8101]

There’s a rumor that ackman sold his shares. Something about salute of limitations?