Replies to post #671964 on Fannie Mae-No Politics (FNMA)

[chessmaster315]

You posted:

In conservatorship shareholders have almost no rights at all, commons and JPS alike. The "fate" of FnF is solely determined by agreements between FHFA/Calabria and treasury/Yellen.

Your arguement is like making an assumption that a man in the hospital will die..worst case senario. Of course, if this happens, neither the commons nor the preferreds have much value. If you assume "the patient will die", then you have no business investing in either the preferreds nor the commons.

Instead, we look forward to the future when commons and preferreds are released from (the hospital) conservatorship.

Neither the commons nor the preferreds, in conservatorship, are at their potential full value.

As always, the future of both commons and preferreds begin when we exit conservatorship.

So, whining that we are in conservatorship is not relevant here. UPON EXIT the commons vote, and the preferreds have "bargained away" their right to vote with their preference in liquidation.
Since FNMA is highly profitable, liquidation is not on the table.

Further, Calabria/Yellen have made their intentions clear: They plan to rob shareholders of dividends as long as possible, or they plan to profit at shareholders expeense with the PSPA.

Fannie/Freddie's fate is at Scotus, not with a "benevolent" FHFA or Yellen or Calabria. We need Scotus to put a stop to corrupt government officials determined to rob us as long as possible.