Replies to post #481250 on Fannie Mae (FNMA)

[KenKong]

Correct!

[kthomp19]

Common shareholder rights remain the exclusive property of current common stock holders of record. No exceptions. That is the law.

Come on now. You know HERA's succession clause as well as anyone.

'(B) OPERATE THE REGULATED ENTITY- The Agency may, as conservator or receiver--

‘(i) take over the assets of and operate the regulated entity with all the powers of the shareholders, the directors, and the officers of the regulated entity and conduct all business of the regulated entity;

That is the law. Literally.

Numerous courts have held that this succession clause means that FHFA has all the rights you talk about while the companies are in conservatorship.