Replies to post #705338 on Fannie Mae-No Politics (FNMA)

[Guido2]

Minor correction: Calabria sent one NWS payment after he became Director. He and Mnuchin signed the amendment to allow retention of capital only after enbanc decision.

[Robert from yahoo bd]

Great analysis, thanks for taking the time and contributing! There's no question that the 5th Circuit is probably the best Circuit for the shareholder Plaintiffs to have their claims for relief from the unconstitutional removal restriction in HERA.

I believe going forward procedurally the EnBanc Panel will decide whether or not to entertain granting a Summary Judgment for either the Defendant or the Plaintiff or kick it down to a trial judge to do a factual determination of damages.

If the later, what could be foreshadowing is which trial judge is assigned the case.

If there is a trial it could take awhile. Also there will be the losing side appealing to the 3 judge panel, then subsequently to the EnBanc Panel, and ultimately a Writ of Certiorari to the SCOTUS.

Ideally for the Plaintiff shareholders, a majority of the EnBanc Panel of Judges would opine that this federal government overreach has gone on far too long and provide the beleaguered shareholders with a bargaining chip to help end this decade plus governmental fiasco via a Summary Judgment.

Of course the government would appeal the Summary Judgment but the SCOTUS could deny the Writ of Certiorari.

[Donotunderstand]

Factual question

Did MC stop the NWS day one? - That is not my memory - Indeed I thought under Watt - Mnuchin (who I view as 200% of the control in all events) - SM had agreed to a Watt request to hold back 3B a year or whatever ---- some amount pre MC

Did MC change that deal day one ? - That is not my memory

And if the GSEs get back that money ---- do new IOUs get written to increase the LP ---- I ask - as best I understand (from news and here) is that every penny kept by F and F - as cash - UNDER THE MC FORMULA - came with F and F writing an IOU of same amount to increase LP

So is a return of money going to come with a similar increase in LP - identical to MC rules

Asking - not in front of the court !!! === but to keep expectations real as its not that clear such money is FREE and CLEAR and not just a smoke and mirrors trade for increased obligation to Treasury (Which is what I believe MC created --- like a BS -- cash on one side grows and liability (LP) on other side grows --- movement to the green is zero

[Louie_Louie]

Great stuff! I can see the logic of Enbanc's past favor with shareholders claims and now Trumps letter playing into this even more.