Replies to post #611022 on Fannie Mae-No Politics (FNMA)

[Guido2]

Plus 1.

What does conversion do anyway? It doesn't raise any capital. It was just a proposal to gift a well-connected coward commons that he was afraid to buy in 2017. By 2020 he has probably seen the enbanc ruling and the derivative claims proceeding to trial in Judge Sweeney's court. His risk in buying commons has disappeared. We'll find out how much he accumulated soon enough.

[Potty]

Lamberth will never hold a trial, let alone give a ruling, if all goes well.

Part of the Big Bang, SPSA amendments, settlement, consent decree, will be a conversion of JPS to move RnR forward and clear deck for new pref and common.

Calabria, as Conservator (and with all powers of board and common holders) will ok the conversion of JPS to settle suits and move RnR forward - alongside Treasury paying back overage...

Lamberth is beside the point, the Conservator is the one who can okay conversion - and Calabria will do that to effect an RnR benefiting all FnF holders whether they understand how they are helped or not

Have a happy memorial weekend...

[bradford86]

i dont expect a lamberth ruling to drive preferred conversion terms.

the fact is that preferred breach of contract claims are valid even after they do the 4th amendment to write down the liquidation preference and eliminate the sweep as well as the tax credits.

those breach of contract claims will need to be settled in order for the companies to raise capital? how do you settle them without paying preferred shareholders cash?

as treasury, you basically own 80% of the commons at that point, and you can set preferred conversion terms... that's how those claims get settled after the elections and before jan 20.. in order to facilitate consent decree.

review the acg updated timeline.

thanks. have fun

tldr you are confusing a ruling with a settlement.. settlements happen before rulings in order to avoid rulings.

in this case the settlement / ruling needs to happen before the companies can raise capital... and so you have competing deadlines with consent decree.