Replies to post #518539 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

The Moelis Plan is a high level plan or template with so many flaws and out of touch aspects as to be totally worthless.

1. It is totally inconsistent with the Administration's Reform Memorandum.

2. It is totally non-implementable until all litigation is settled.

3. The litigants are almost all JPS investors who lose standing to their claims if they settle.

4. There is no established likelihood that ANY of them will convert to common shares to vacate JPS dividend contract rights.

5. There is grave uncertainty about any recap scenario that involves a secondary offer on an Otcmarkets trading platform.

6. There is even graver uncertainty about the ability to successfully subscribe any offer for businesses that are in conservatorship.

8. There is even GRAVER uncertainty that any secondary offer that is 4 to 6 times larger than the currently largest IPO in history would even be able to secure an underwriter and book runner.

Consequently, the Moelis Plan might best be classed as unrealistic, half-assed and worthless.

[bcde]

kthomp19,

Few days back, you asked me to repost the Shareholder's Post Card plan.
Here is the sequenced plan.

These are the required steps in logical sequence for successful release and rehabilitation of FnF as private share holder companies.

These steps will end Gov control and FHFA conservatorship control of FnF in compliance with Trump White House Directive.

1. Unwind safely all concrete life preservers that were created to destroy FnF.
Reverse retroactively NWS (3rd amendment). Revert to original SPSPA.

2. FnF are Gov creations for unfunded Gov public policy purposes.
So reasonable dividend rates be used for SPSPA instead of unfair usury 10% rate.

3. UST pay back any excess dividends received and cancel all SPSPA obligations.

4. Let FnF buy back warrants (may be for less than $10B) as per Gov guidelines used for TBTF banks

5. Let Gov(FED) provide temporary credit line to FnF on terms similar to banks until FnF are fully capitalized.

6. Let FHFA, HUD, UST, SEC and Fed implement capital requirements in phased manner that are appropriate for mono line insurance companies.

7. Release FnF from conservatorship.

8. Let lawfully elected BOD, CEO, Management and Shareholders decide on how to meet regulatory capital requirements over a period of time without destabilizing the markets and economy.

9. Up List FnF on regular stock exchanges and FnF start on implementing capitalization plan.

10. Let Congress and Administration settle all the law suits.

11. Let Congress and Administration start fixing housing finance system as and when they find right answers and alternatives in incremental steps. The reforms ideas should be implemented one at a time without destabilizing the markets and economy.

12. Abolish all unconstitutional and undemocratic powers of FHFA/HERA like 4617f and review HERA to provide clarity in interpretations. Let all future conservatorships be managed under the supervision of special courts to minimize political, bureaucratic and ideological over reach and abuse.