Replies to post #593861 on Fannie Mae-No Politics (FNMA)

[kthomp19]

It may be irrelevant to you. Doesn't matter.

Not irrelevant to me, but irrelevant to the (fallacious) argument that FHFA including the warrants in the original SPSPAs somehow violated its mandate to preserve and conserve the assets (not the equity) of its wards.

Rule of Law matters.

11,000 documents in Judge Sweeney's court matter and are relevant.

65,000 documents in Judge Lamberth's court matter and are relevant.

Fannie and Freddie will get justice either through courts or settlement. I believe it will be through settlement.

None of this has anything to do with my argument, that you are wrong about boards of directors elected by common shareholders being the ones who will be in control of the capital raise. HERA supports my side of the argument, and I cited the relevant parts of it. What supports your side?

You also have yet to explain why you think there will be little or no dilution.



(from another post)

That is voodoo accounting.

What does this mean? I pointed to FnF's own SEC filings, so the accounting in question is GAAP, not voodoo.

Does Treasury have equity in the corporations? Or doesn't it?

If the SPS is worth $193 billion, then Fannie and Freddie should be released already.

Yes, Treasury's seniors are equity in the company.

Your last statement is false, because the premise is true (the seniors are worth $193B) but the conclusion is false (because FnF's core capital is still hugely negative, which is below all possible capital standards).