Replies to post #742994 on Fannie Mae-No Politics (FNMA)

[FOFreddie]

The National Economic Council and Hank's right hand guy at UST were planning to nationalize the GSEs in 2008

From Page 12 of from the March 8 2008 Memo:

"As shareholder capital gets wiped, the government will have no choice but to seize the company and place it in conservatorship or receivership. Importantly, mortgage-backed security holders guaranteed by Fannie Mae will see no losses. The government will likely allow debt holders to fare okay, with either no or token losses, perhaps 1%. Shareholders, both common and preferred, are likely to be left with nothing. As shareholder capital gets wiped, the government will have no choice but to seize the company and place it in conservatorship or receivership. Importantly, mortgage-backed security holders guaranteed by Fannie Mae will see no losses. The government will likely allow debt holders to fare okay, with either no or token losses, perhaps 1%. Shareholders, both common and preferred, are likely to be left with nothing"

https://fcic-static.law.stanford.edu/cdn_media/fcic-docs/2008-03-08_Treasury_Email_from_Hason_Thomas_to_Robert_Steel_Re_Source_document_for_Barrons_article_on_FNM.pdf

[Rodney5]

kthomp Quote: "Let's say you are right and Paulson really did threaten the boards and they caved and consented to conservatorship. So what? Is that a reason to celebrate while the commons trade at 36 cents and the juniors at single digit percentages of par? Would it un-dismiss Washington Federal?" End of Quote

So what?? It's theft, the action of the crime of stealing. AND it will be brought before 'The Judge.'

[trunkmonk]

please point out one fact in that whole reply, thanks. i dont know anyone celebrating on top of that.