Replies to post #597194 on Fannie Mae-No Politics (FNMA)

[Guido2]

Which law?

It is just voodoo accounting. Fannie Mae and Freddie Mac had more capital before conservatorship than they do now. In the meantime they earned $300 billion. Calabria and his predecessors as "conservators" entered into agreements to create zombies of two of the most profitable corporations in the world.

A conservator's primary duty is to preserve and conserve the assets of it's wards. Anything else is illegal. THAT IS THE LAW!

[Commons_Cancelled]

HERA says this is perfectly Legal and it would actually be considered Following the Law by most standards. So roughly $100B in Sr. Preferreds could dilute $FNMA Commons and do it Legally also :-(

We all know how Calabria feels about the Law he helped write. Does he still have that dog-eared copy of HERA?

[mrfence]

WONG!

[investor G]

Holden, I believe you would strongly bet against the govt literally writing a 125bn+ check to FnF and keeping the sr pref [IF] the SC ever rules against the sweep. Everything isn't literal, a deal would likely be worked out and if this scenario ever occurs the leverage would shift away from the govt who very clearly wouldn't want to write a check. Selling $200bn+ of stock would take near a decade. They already have warrants. etc....