Replies to post #636114 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

I think you missed my overall point. If the SCOTUS rules that HERA must be voided, which is my hope, no agreement signed by Lockhart is valid unless he declared a receivership... which never happened. In such case, the entire SPSPA is voided along with HERA. The GSE Act is quite clear on receivership i order to declare a critical under-cap rationale for declaring a C-ship.

I would encourage you to rethink your sell by DEC 9th if orals happen plan because by that date the tax loss selling will start to drag all shares into the cesspool. Selling at that time would be an imprudent strategy, IMO. Anyb recovery, especially on JPS, would be better today than waiting so long.

I think the trigger point to be looking towards is the Capital Rule being finalized and some agreement between UST and FHFA on renegotiated SPSP Agreement. Then NYSE uplist notice. Then Consent Agreement, especially if Biden wins. If no progress is made on these, I, too, would consider bailing in advance of the 4-6 month hiatus before SCOTUS rules.

Good luck. This is tough stuff to endure. For me, I am hoping for a DEC decline so I can reload at/near <$1 and make a killing in Spring because I think SCOTUS TO THE RESCUE, especially if Barrett gets confirmed.

[WB_fan82]

KT:

What if we get an amended SPSA, perhaps w/ the common exchange you are predicting, but no SC settlement by Dec 9th?

[FOFreddie]

Hi Kthomp,

I will take the other side of that argument. I think UST and FHFA wait until oral arguments and consider taking the GSEs out of Conservatorship on Jan 1 in case SCOTUS invalidates HERA if orals go bad for the UST.

The case is too important to prevent future back door nationalizations and to push back against the creep of the Administrative State.

Also - I think you have been consistently wrong on the application of Corporate law and the issues regarding the intention in HERA to use the fairness standards in the resolution process proscribed by the FDIA as it pertains to the ultra vires acts of the FHFA as Conservator.

Time will tell and it is your decision to sell or not before then.

Good luck to Common and JPA alike.