Replies to post #531061 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

This is precisely the point behind my frequent references to RICO violations and the possibility of an "organized crime" style challenge to GOV actions revealed in just the small part of the document cache released in the Sweeney court. There's the Parrott stuff, the Ugoletti stuff and a lot more potentially still in the GOV blockade to cover up a massive, conspiratorial crime orchestrated by the regulator and the Secretary of the Treasury (actually, more than one of both GOV actors). And others.

The criminal angle is significant because it potentially alters the judicial landscape regarding statute of limitations constraints and also where such a case would get assigned for jurisdiction. If the 2008 crimes are ruled beyond SoL eligibility, the 2012/Amendment 3 stuff might still be eligible. There is plenty or "dirt" to go around, IMO.

If the Collins en banc somehow fails to deliver, this may be our last/best option remaining.

[obiterdictum]

Hi Embers,

Mutually signed- old boys club

Substantially different than that according to Henry Paulson.

Just because there was an agreement this agreement did damage the shareholder by impacting the price of the stock they owned.

Yes. And agreements of all types in other publicly trading businesses have an effect on the share price. Consider the negative impact on share prices by merger/acquisition agreements that foster uncertainty and are done without shareholder approval. See: https://www.learningmarkets.com/how-mergers-and-acquisitions-affect-stock-prices/

Consider also the events that took place.
Saturday, September 6, 2008 - Conservatorships began
Sunday, September 7, 2008 - SPSPAs signed
Monday, September 7, 2008 - Warrants issued

Monday, September 8, 2008 - FNMA and FMCC share prices drop from Friday, September 5, 2008 prices of $7.04 and $5.10 to Monday, September 8, 2008 prices of $.73 and $.88. Volume increased from 83,613,900 and 85,500,000 to 585,901,400 and 370,053,100 respectively.

What event or events determined this sudden volumninous sell-off? What about the huge sell-offs prior to these dates?

Sadly, it seems like there is precedence for this type of robbery.

The loss of share price is a result of trader sentiment in response to news (conservatorship) that was considered negative. Some people made a killing in the sell-off. Others, running scared, lost big. The GSEs did not lose a penny. And the sell-off began much earlier after the dividend given on Oct 29, 2007. So where did the sell-off really start and what events contributed to it?

The government actions were like the mafia forcing a company to make bad deals with their friends (for political reasons in this case) and then coming back and telling them they were in bad shape and needed a special loan and the mafia was going to become a 79.99% "owner" of their company.

The GSEs did not need a bailout. But government threats and subsequent fear ruled the Board of Directors. Henry Paulson details this in his book. It is not a secret. “Mr. President, ... we’re going to move quickly and take them by surprise. The first sound they’ll hear is their heads hitting the floor.” and so on.

No loans were made. The federal government does not own the GSEs. The GSEs are not on government books.

A big load of crap. If we are still in the good old boys and mafia era with business, then shame on our country, politicians, and judges!

A number of unsavory affairs and outcomes.