Replies to post #692821 on Fannie Mae-No Politics (FNMA)

[JosephS]

Very possible. No real catalyst until about 1 1/2-2 years from now in a Lamberth jury trial.

If we were to win par or par plus interest, the preferred shares trade at 50/60 cents on the dollar while on appeal.

Remember, it was sent back by the appeals court already. This is the remand trial on breach of implied covenant & breach of good faith and fair dealing. The two parties (both on the same side of the table as government actors) took the property “the right to receive dividends if/when there is excess capital” and liquidation rights.

The NWS seems to take all liquidation rights for Treasury as well.

This is a sham but it continues.

So yeah, I’m chilling with preferred.

[bradford86]

Generally agree.

[highwaymap]

We are at an astonishing .85 for fmcc. If they are going to reprice the pps properly to reflect senority, then at the fmcki at 1.34, which is a 25 jps, we are looking at your number of .20