Replies to post #717385 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

I assume

after paying dividends

[Clark6290]

Ace, IAW the FHFA.GOV website under SENIOR PREFERRED STOCK PURCHASE AGREEMENTS.

"In exchange for Treasury’s financial support, the SPSPAs require Fannie Mae and Freddie Mac, among other things, to make quarterly dividend payments to Treasury, provide Treasury with a Liquidation Preference, and beginning in 2010 pay Treasury a periodic commitment fee that reflects the market value of the outstanding Treasury commitment, as well as Stock Warrants for the purchase of common stock representing 79.9% of the common stock of Fannie Mae and Freddie Mac, respectively, on a diluted basis."

I interpret "a periodic commitment fee... as well as Stock Warrants for the purchase of common stock representing 79.9%..." Key phrase to me is "as well as."

My question based on ignorance, why would the GSEs be off the hook for the dilution of common stock? I interpret as the government is not only recouping all their money (plus the stolen funds) and keeping the stock warrants for the purchase of common stock representing 79.9%.

Go ahead bashers, I know you want to attack.

[altruism]

All refunds require a receipt.. sorry store policy

[Achilles deFlandres]

What she says that disagrees with the written SPSPA with treasury means only that she misstated the facts.

[M I A]

Yeah, I saw that part. Thanks for the link.
Did you see the look on her face when she said it?
It's like she wanted to say more of what might have been on her mind, but had to hold back. So she gave a look instead. That look says it all. No matter what happens or has happened, she and others know the truth.

Disclaimer
*JMO

[stockprofitter]

Bradford says it isn’t

[kthomp19]

SPSA IS FULLY REPAID !!!

Says Sandra Thompson

Sadly, what Sandra Thompson thinks about whether or not the seniors (not the "SPSPA") have been repaid is meaningless.

What matters is what the Treasury Secretary, currently Janet Yellen thinks. I don't believe she has opined on that matter yet.

If you're expecting Treasury to just give the seniors up for no return consideration, even though courts have said that the NWS was neither an APA violation nor a takings, you're going to be waiting a long, long time.

You also seem to be making the fallacious logical leap from "Treasury has been repaid" to "Treasury should cancel the seniors and warrants". Right now, Treasury owns the seniors and warrants free and clear, and the courts have refused to do anything about them thus far. Treasury giving either of those up for nothing in return is just a huge giveaway, and it wouldn't even be justice because the shareholders they supposedly screwed were those in the past; rewarding present shareholders wouldn't be justice at all.