Replies to post #535657 on Fannie Mae-No Politics (FNMA)

[kthomp19]

All the SPO/IPO are agreed by broad of directors which representing the interest of shareholders.

Yes the boards will agree, but it will be because FHFA tells them to. The "interest of shareholders" thing doesn't apply while FnF are in conservatorship.

But as your post indicates UST and FHFA are not responsible to the shareholders but the taxpayers

For Treasury this is correct. FHFA is not responsible to either of these.

so the SPO is for public use

No it isn't. Private parties (individuals and companies) will be buying the shares. The proportional ownership is for their use, not the government's. Therefore all takings and illegal exaction claims will fail.

Very difficult to do SPO if the SPO has lawsuits on it.

All lawsuits based on this idea of yours are frivolous and won't affect any part of the decision-making process.

And if you somehow end up being right and you can stop the secondary offering by filing a lawsuit, all you're doing is preventing recap and release. A retained earnings-only recap is not going to happen.

Also, Calabria and Mnuchin are far too smart to give possibilities for a recap that are illegal. Both a secondary offering and a junior-to-common conversion are 100% legal, and any challenges brought to them in court will just be a waste of the plaintiffs' and the government's time and money.