Replies to post #710487 on Fannie Mae-No Politics (FNMA)

[amelia43]

Can you please bring back the Moelis plan? That one sounds much better in retrospect.

[nats1]

if you disagree --- point me to the lawsuit and the legal claim and what it is worth for commons and how it is worth more than $2.

The overall issue is not just the lawsuits or the Government seeking to squeeze every last dollar out of this - the Government will seek to optimize its situation. In regards to just the legal situation - if DOJ sees a possibility of a loss in any one of the ongoing major suits, it will advise the Government to settle. That's what they are there for.

Also, the administration knows they have to accomplish their housing program by 2024 - not knowing who will be in charge beyond that date. There will be a lot of political pressure to grab that money and they can't do so unless they settle the lawsuits by then. And the way to settle is compromise - give up the Seniors and exercise the warrants. A small chance of total stockholder victory, of course, and no Government warrants - but the Government will settle before it gets to that point. The other possibility is total stockholder loss - and maybe the current stock prices of common and preferred reflect this - but I, and a lot of other folks, are betting against this.

Nats

[Donotunderstand]

yet

you are still in the projection or assumption business

[FOFreddie]

Hi Glenn,

What do you think the Fairholme Case is about before Lamberth? Perhaps I am wrong but isnt the NWS defined as all of the 3rd Amendment?

Regarding Collins - what is the USD amount they are seeking in damages - you dont think this would be more worth more than $ 2 for FMCC?