Replies to post #737678 on Fannie Mae (FNMA)

[Rodney5]

Smokescreens, what a tragedy!

The Plaintiffs should call the Professor to the stand.
Richard A. Epstein

Quote: “In closing, there is a simple test by which to measure the probity of the combined actions of FHFA and Treasury. If FHFA were replaced by a private trustee, and Treasury were replaced by a private supplier of fresh debt or equity capital, both parties would end up in jail if they concocted a scheme that resembled the NWS. Everyone would cut through the various smokescreens to see that the excess dividends were a naked raid on the interests of the other shareholders as happened here. The great tragedy of the majority opinion is it follows the all-too-common practice of giving the government a free pass when its own motives are as corrupt, or more so, than comparable private parties in similar roles and with similar legal duties. From the time that I started to work on this issue, I always said that litigating against the government is like playing craps with loaded dice.” End of Quote

[Rodney5]

Smokescreen Quote: " following termination of the commitment." End of Quote

The money swept by the Treasury if it had been applied to LP and the 10% over payment returned to the companies the LP would be paid in full and the SPS would be redeemed and at that point in time SAME DAY IN TIME the companies could turn to the Market with a secondary IPO replacing the commitment.

NO MONEY LEFT TO PAYDOWN THE LP AND REDEEM THE SPS WHEN THE TREASURY SWEEPS THE ENTIRE NET WORTH...

[Rodney5]

Smokescreen Quote: “FnF never had the ability to pay down the seniors.” End of Quote

Never had the ability to pay down ?? Wrong

In the Supreme Court of the United States, PETITION FOR A WRIT OF CERTIORARI

Hamish P.M. Hume Counsel of Record Samuel C. Kaplan Boies Schiller Flexner LLP

ELIMINATING THE NEED TO PAY ANY ONGOING SPS DIVIDEND.

Quote: “But this $149.4 billion estimate actually understates what Treasury has taken through the Net Worth Sweep, for two reasons. First, the Net Worth Sweep remains in effect, such that each quarter’s increase in net worth at GSE results in an increase in the Treasury’s liquidation preference in its senior preferred stock. Second, had it not been for the Net Worth Sweep, the GSEs would have been able to fully repay the amounts borrowed from Treasury, with interest, eliminating the need to pay any ongoing senior preferred dividend. “End of Quote page 13

https://www.supremecourt.gov/DocketPDF/22/22-98/230704/20220722162334690_Petition%20for%20Writ%20Of%20Certiorari.pdf