Replies to post #655888 on Fannie Mae-No Politics (FNMA)

[Wise Man]

Good people don't try to rip-off the shareholders, agreeing with the warrant, the 10% dividend, a swap jps for commons, a government explicit guarantee, a commitment fee.
The law states otherwise.
The difference is a common stock worth $270 versus $10.
I will defend our economic interests fiercely.

[Wise Man]

That said I think we all agree on what has happened here; the illegal takeover (by coercion, and then subsequent accounting fraud)

No, we all don't agree on that.
The conservatorship was legal, based on the FHFA Dtr's discretion to place them based on "(G) LOSSES, likely to incur losses that would deplete Capital."
Your assertion of Accounting Fraud isn't the same as mine, so don't say that we have the same take because you are tarnishing my name.
Your assertion of accounting fraud is a mistake, because it was justified with the prior accounting rule "Incurred Loss" since mid 2008, that made them balloon the provisions for loan losses, setting aside a provision for future FAKE credit losses equal to the concession granted to borrowers. Then it's legal. The accounting rule is flawed, that's why it was changed for CECL accounting standard on January 1st, 2020.
Now, the provision is based on an estimation of REAL future credit losses, although there's other problem: it's recorded as Allowance For Loan Losses and thus, asset written down (it assumes that the future credit loss already occurred), when it should be a simple Reserve for Loan Losses, deemed Capital and Equity.

[Saywhat79]

What bothers me is "we all agree on illegal takeover" we all know they have billions of cap before cship. Having 80% of property taken without compensation is taking. Tru, tho they paid for it for .000001 per share while stock was trading at 5. Do you think it's right when we are talking regarding property rights. My point is i'm a small potato probably the smallest here when I bot my 2k share 12 years ago my was pregnant and I see value on this stock back when it was crashing down to 4+ I read their financials and thinking they are safer thank all banks so I'm invested in. Then come cship I couldn't sell for a lost bec I'm a newbie investor so I stick with my guns and wait for the result my co will be free prior to cship as a whole not a portion. But thanks for all your work as well glen I read all your blog. Keep it up information is information. Happy new year.