Replies to post #728009 on Fannie Mae-No Politics (FNMA)

[kthomp19]

I'll bet none of those 4 USSCT cases involved a federal government Conservator where the intent to have the federal government nationalize the entities pre CONservatorship was a discoverable event.

The only takings cases that challenge anything other than the NWS are Washington Federal (direct claims) and Kelly (derivative claims). WF only asks for money damages equal to the price drop from the day before to the day of conservatorship, and only for those who held shares on September 5 2008.

There is no share price when it comes to derivative claims because those are on behalf of FnF.

Any takings cases filed over the warrants or a senior-to-common conversion would have to be direct, though, because they don't harm the companies. In fact, each of those things helps the companies, especially the latter. That's where the part about the Supreme Court citations comes in.

BUT THIS FACT PATTERN INVOLVES OUR FEDERAL GOVERNMENT'S EXECUTIVE BRANCH PRE-CONSERVATORSHIP PLANNING A NATIONALIZATION OF TWO OF THE LARGEST US FINANCIAL INTERMEDIARIES.

I certainly want these cases to succeed, don't get me wrong. Especially Kelly. I just don't think the fact pattern will matter enough (for the direct cases) to overcome the Supreme Court precedent that Treasury will only have to pay the drop in share price due to their actions.