Replies to post #731433 on Fannie Mae (FNMA)

[Guido2]

Judge Lamberth started the avalanche of bad rulings against plaintiffs. Instead of salivating on the dividends on my FMCC commons (bulk of my investment) or my preferred, I'm anticipating him allowing all the plaintiff's evidence other than items ruled as privileged by Judge Sweeney. Those documents will be used by other plaintiffs in their lawsuits. Any ruling against the government is good for all investors, Common and preferred. Fannie and Freddie.

[kthomp19]

I can't believe the mental gymnastics required to justify owning FNMA over FMCC here. There is absolutely no reason not to switch over at this point.

The chances of FNMA holders eventually getting a court-ordered damages award are strictly less than that of FMCC holders getting one. If the plaintiffs win Lamberth's case and get money for FMCC holders, FNMA holders can try to file their own lawsuit but that has no guarantee of success at all.

Winning Lamberth's case does nothing to help the companies. In fact, it hurts the companies because they will have to pay out cash, meaning any capital raise they have to do later would be larger than without the damages award. The seniors, warrants, SPSPAs, conservatorships, and even the modified NWS would continue to exist in their current form. So arguments that FNMA holders would somehow indirectly benefit from a FMCC damages award are just plain wrong.