Replies to post #638070 on Fannie Mae-No Politics (FNMA)

[kthomp19]

What kind of suicidal investor is going to trust Uncle Sugar after this kind of fiasco, much less to the tune of the largest financial capital raise in WORLD HISTORY!

One that gets a sufficient return adjusted for the risk. If the risk is too high, the capital raise fails and recap/release dies.

I have made this point and I will make it again: nothing that FHFA and Treasury do for current shareholders will reassure new investors. These new investors won't be stepping into the shoes of 2020 investors, they will be stepping into the shoes of 2008 investors.

So if FHFA and Treasury need to provide assurance to the new investors, they will give money to shareholders from 2008, not 2020. The idea of "rights travel with the shares" won't matter because we are talking about new investor reassurance, not lawsuits.

All that "fair" (whatever that even means!) treatment of 2020 shareholders will tell new investors is that they will have to wait 8-12 years to be made whole if the government acts again as it has.

[trunkmonk]

Hera is clear, and violated. Yet Mnuchin, just after getting in office, says he has no problem taking the money. That was inflection point and why it’s sitting here 3 years later.

[jeddiemack]

True.

Unless and until the shareholders are treated fairly, no new "smart" money will invest unless the terms are ridiculously favorable; which would be horrible for the entities and probably be on terms that only a russian mafia man would propose and a poor sucker would take.

There is too much risk associated with putting fresh money in this dumpster fire they've created.

Anyone who argues differently either has an agenda, likely paid agenda, or simply is as fresh as the driven snow. Book learned but not street smart.