Replies to post #690704 on Fannie Mae (FNMA)

[Bryndon]

What makes you think the USCFC has the authority or jurisdiction to recharacterize past NWS payments as paying down the seniors, in contravention of the original SPSPAs (which your case does not challenge) which say that FnF never had the ability to pay down the seniors?

We’re not asking the court to recharacterize the quarterly transactions under the net worth sweep. We’re asking the court to recognize a taking (i.e., NWS) of private property (i.e., the companies’ capital) for a public purpose (see Collins opinion) without just compensation. If we’re successful, this would lead to a valuation of that taking; my model simply provides a way to do that. It also provides a process for Treasury and FHFA to quickly and fairly retire the senior preferred shares while settling the net worth sweep matter once and for all.

If we’re successful, how do you see it?

[chessmaster315]

Still another unsubstainted opinion:
You posted:

A takings claim based on a senior-to-common conversion could gain at most $2.1B for all common shareholders combined ($1.20 per share or so) if it were to happen today because the Supreme Court has said on several occasions that takings awards are based only on what the property owner lost, not on what the government subsequently gains.

The bold portion, above, is simply false. Common shareholders have lost billions and billions in dividends, billions and billions in lost share value, and another 40 billion or so in money confiscated and given to US T. You have plucked "$2.1 billion" from thin air, Scotus said nothing of limiting our taking to this.