Replies to post #588685 on Fannie Mae-No Politics (FNMA)

[FFFacts]

This case has to do with price fixing of bonds at financial institutions who are named as defendants. The bonds were issued by Fannie Mae and Freddie Mac.

[obiterdictum]

With all due respect, this makes no sense. Remember, the bondholders were not damaged...Bondholders got their applicable interest rate(s) as well as the bond principal returned.

The GSE's paid out as insurance claims, to the bondholder, in the event the borrower defaulted on the applicable mortgage. So, the bondholder suffered no financial "injury".
The "injured party" was the shareholders, not the bondholders.
AGAIN, bondholders lost no money, instead the toxic loans were dumped on FNMA and the applicable losses ultimately were paid for out of shareholder earnings pockets.
The bondholders were not "injured", instead, the FNMA shareholders bore the blunt of bondholder manipulations as FNMA was the "insurance company".
Fnma does not MAKE loans, we insure the loans against default, with the premiums paid by the mortgage borrower.

The settlement class's property and business were damaged.

304. As a proximate result of Defendants’ unlawful conduct, Plaintiffs and members of the Class have suffered injury to their business or property. These injuries included, but were not limited to, paying artificial and non-competitive prices for GSE Bonds as a proximate result of Defendants’ anticompetitive conduct. Plaintiffs and the Class were also deprived of the benefits of free and open competition in the GSE Bond market.

305. Plaintiffs and members of the Class are each entitled to treble damages for the Defendants’ violations of the Sherman Act alleged herein, and a permanent injunction restraining Defendants from engaging in additional anticompetitive conduct. p. 98 - https://www.courtlistener.com/docket/14573344/254/in-re-gse-bonds-antitrust-litigation/

Its unclear why the document was sent to me if I have "no interest" in the settlement and dont belong to the settlement class.

"Buyers of GSE-issued debt securities include domestic and international banks, pension funds, mutual funds, hedge funds, insurance companies, foundations, other corporations, state and local governments, foreign central banks, institutional investors and individual investors."

Perhaps via an investment or participation in you are associated with one or more buyers of GSE-issued debt as listed above. Check your investments, pension fund, mutual fund, etc. to see if GSE bond transactions occurred.

Please dont take this as an insult, it is not intended as such.

Understood.

We all appreciate your well reasoned comments, this is probably another instance of me not understanding this.

Yes. Please review the case to understand what has actually occurred.

Big banks settle Fannie Mae, Freddie Mac bond rigging litigation in U.S
https://www.reuters.com/article/us-fannie-mae-freddie-mac-bonds-lawsuit/big-banks-settle-fannie-mae-freddie-mac-bond-rigging-litigation-in-u-s-idUSKBN1YL1RK

Lowey Announces New GSE Bond Settlements Bringing Total Recovery for Investors to $386.5 Million
https://www.lowey.com/news/lowey-announces-new-gse-bond-settlements-bringing-total-recovery-for-investors-to-386-5-million/

World’s biggest banks paying $386 million to settle allegations of price-fixing Fannie Mae, Freddie Mac bonds
https://www.housingwire.com/articles/worlds-biggest-banks-paying-386-million-to-settle-allegations-of-price-fixing-fannie-mae-freddie-mac-bonds/

THIRD CONSOLIDATED AMENDED CLASS ACTION COMPLAINT
https://www.courtlistener.com/docket/14573344/254/in-re-gse-bonds-antitrust-litigation/