Great post.
The issue of "How/why Fannie got into conservortship" is important.
The Government has alleged that shareholders deserve zero because, had it not been for the cshp, fannie would be bankrupt. We know that is simply not true.
Instead, the government caused the cship for political reasons, not due to financial instablility of fnma. The government was not the solution they WERE the problem.
Hank Paulson admitted, in July, 2008, that "fannie was in no need of government funds". 3 weeks later he put us in cship. What happened? Well, Obama was unable to get Obama care funded by a GOP dominated congress. So, he concocted the "secret plan" to take over fnma and fmcc and confiscate the profits to fund Obamacare.
The government justified such a taking by manipulating FNMA balance sheet, forcing FNMA to a higher loan reserve, and "taking Back" billions and billions in DTA's. Also, they permitted TBTF banks to steal from fannie by lying about the quality of the loans sold to fannie. ("TOXIC loans" were dumped on fannie by TBTF banks).
Through this, they were able to show, on paper, that fnma was insolvent, when that was a lie.
They needed the Board of Directors "out of the way", so they coerced all board members to resign at the same time.
It was all a corrupt taking, a white collar crime, that few understood. Its taken more than 11 years to unwind the governments illegal taking from fannie and freddie, giving billions to tbtf banks. Most of the money stolen from fannie by banks was forgiven by the government. The TBTF banks stole tens of billions of dollars via dumping of toxic loans on FNMA. Eventaully, the courts would "settle" this for pennies on the dollar, resulting in multiple billions of dollars being transferred from fnma to tbtf banks, all with government blessings.
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