Replies to post #686978 on Fannie Mae-No Politics (FNMA)

[Angelmin]

Who is buying and who is selling?

[kthomp19]

This isn't a bankruptcy.

Yes it is. Believing that it isn't is a common, and unfortunate, misconception.

Mark Calabria, who helped write HERA, said it himself at 20:10 of this interview:

A conservatorship is essentially an administrative bankruptcy. So just like a company, like look at Hertz, that's going through a number of problems today, not surprisingly because of a weakness in tourism. You know, Hertz is in a bankruptcy. There is a government-appointed official, a judge, who is overseeing that process. Essentially what I am doing is playing the role of a bankruptcy judge in rehabilitating Fannie and Freddie. They maintain as private companies.

Calabria not being the FHFA director anymore does not make this any less true.

Also, shareholders do have power despite what people think. Court cases will continue.

Maybe the shareholders who are named plaintiffs have some power, but not the rest.

[jog49]

Someone couldn't make the distinction between bankruptcy and bank robbery.