Replies to post #511088 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

Too long to read and digest.

[kthomp19]

but the cheapest of all is just undoing what they have done

If "undoing what they have done" involves Treasury sending FnF all the dividend money paid (~$280B), I'd hardly call it cheap. What exactly do you mean by "undoing"?

most damaging lawsuits are jet to come if they continue the sweep

Not really. The statute of limitations has run out in regards to the NWS, just see Lamberth's dismissal of the Angel suit.

if the government does not act now, the pre-conservatorship stockholders will press claims against FHFA that they run the conservatorship in perpetually

Um, what has stopped this lawsuit from happening before now? Why would pre-conservatorship shareholders have waited this long?

the first priority for the government is to take care of FnF stockholders

Completely disagree. If that was so important to the government, they would have acted far differently to this point. Us shareholders are just hanging on for the ride; the government doesn't care if we make or lose money.

we are together with the government the owners of the company (20.1/79.9%)

That 20.1% is quite optimistic. It assumes no junior pref conversion, but more unrealistically, is assumes no dilution from a secondary offering. How do the companies recap in Mnuchin's timeframe without one?

they need to find funds to bail the stockholders out or reform in a way that does not harm stockholders but that will take another 20 years or so to accomplish, so for the moment we are good.

You're counting on Congress to help current shareholders? Yeah, good luck on that one. I think you would sooner die of old age.