Replies to post #508308 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

Why is this a good post? The unmistakable truth is that FHFA abided critical under-capitalization for 10 years but, suddenly now, a provision in HERA requires properly defined "core capital" to be present?

The sad reality is that due to 4617(c) in HERA, FHFA can do anything it wants and it is fully legal. I HATE this interpretation of the law, but it is what it is. May as well use it to do something GOOD for a change and free FNMA from solitary confinement.

[Donotunderstand]

for 100th time with no counter response

the pushback to new shares in the tens of billions to make us .01%

the street and the IPO big boys

they absolutely will want a NYSE listing and a normative PPS range and reasonable number of new shares

that is huge pushback against tens of billions of new shares to make us .01%


and - lawsuits


we can view ourselves as screwed but courts have not been friendly on much so far

However - if our 19.99% is reduced NOW - there would be a slew of new lawsuits that IMO would be slam dunks … and more importantly by far the OVERHANG OF THIS POTENTIAL (AT 99%) WOULD MAKE IT IMPOSSIBLE TO ISSUE NEW SHARES UNTIL THE SUITS WERE RESOLVED ---- AS NO ONE WOULD BUY THE NEW SHARES