Replies to post #577015 on Fannie Mae-No Politics (FNMA)

[kthomp19]

and that puts the 10% divi and 80% warrants in question.

No, it doesn't. At least, not in a way that matters to any of us who bought shares after 2008. Washington Federal's case doesn't seek to have anything actually changed retroactively or prospectively. They only want money, and given the court they are suing in, that's all they can get.

No sure if Wash Fed P's have deep pockets and want to play chicken, but could that suit be a spoiler? ... and isn't that under Sweeney as well? ... and doesn't that have the potential to be a class action?

To my knowledge, Sweeney has not certified Washington Federal (or any other case) as a class action yet.

Washington Federal's legal team is also working on contingency. They are rumored to be the plaintiff most desparate for a settlement. I wouldn't count on their case, or any other for that matter, ever reaching trial. If no cases are certified as class actions, FHFA and Treasury can settle all of them by just paying off the named plaintiffs.

[ano]

It sure looks like they are going to settle, the NWS is already called illegal by the 5th circuit, and RPF’s from Fairholme need to be produced too, so evidence that supports the Washington Federal case is already being produced, so they will not concede in anyway, the stakes are too high, and even if their pocket is empty pauls son and karl and a lot of others are willing to go to the bitter end and help them out, the 10% dividends are not legal either and not market conform, so that for sure is a settlement discussion, the warrant is not legal, with the 79.9% the government took upfront future profits of a profitable company(not a company is distress), and that is not allowed, the government has no power to take over a company without compensation, that is a constitutional question so the warrant is illegal pur sang, only the rest of the world is not aware if it yet. So WF is hard to settle but they are in it for the money, so maybe it is not that difficult after all

It does seem relatively more straight forward to settle the NWS suits, but that still leaves Wash Fed. My impression is that their suit may essentially concede that gov't had the right to trigger cship (fog of war and all that rot), but the cship nevertheless constituted a taking without due process and compensation - and that puts the 10% divi and 80% warrants in question. No sure if Wash Fed P's have deep pockets and want to play chicken, but could that suit be a spoiler? ... and isn't that under Sweeney as well? ... and doesn't that have the potential to be a class action? Sorry for so many questions, but inquiring minds ... :)