Replies to post #747146 on Fannie Mae-No Politics (FNMA)

[kthomp19]

That's why David Thompson filed in his brief yesterday in Collins that the NWS should be invalidated because it is a Seperation of Powers violation, right?

I'm actually reading through that brief right now.

The avenue by which he's trying to get the entire NWS unwound is the Appropriations claim. The requested remedy for the Separation of Powers claim is to have the seniors either cancelled or converted to common. I think you have conflated the two.

Just saying maybe our JPS friends have jumped on the 'litigation is finished' bandwagon early, because the NWS was declared legal under the Incidental Powers of HERA in Collins and they are anxious for their "Payday at par or close to it" clock to start going faster.

This sounds suspiciously close to content about other posters and their motives for posting, each of which is a TOS violation. It's best to stay away from such discussions because they bring nothing to the table.

Don't you think it's better to challenge the Constitutionality of the FHFA and/or the NWS instead of jump into the Dilution solution and instant recap phases?

Those challenges were filed years ago.

I hope you don't hold it against me or any other American shareholders (JPS or Common) that wish to challenge this federal government overreach.

You plan on filing your own lawsuit? What on earth are you waiting for? I've already explained why injunctive relief is somewhere between difficult and impossible to get. If you wait to file your lawsuit until after the seniors are converted it will be too late to undo the dilution.

Multi Billion dollar litigation just takes time.

Something all FnF investors have learned the hard way.

[FOFreddie]

Exactly Robert - once the UST starts getting cash from IPO proceeds from a cramdown - a new takings cause of action is ripe. This may actually happen post conservatorship because we are talking about the UST selling its shares for payment directly to the UST coffers which assumes that the necessary outside capital raised on behalf of the GSE itself goes on the GSE balance sheet. In any case injunction or not - there will be another whole set of taking issues with real cash transferred ( taken) by the UST.

Then there are practical issues like Underwriters Liability, Special Committees, Fairness Opinions. It really is a pipe dream making a whole lot of assumptions. Lots of risks for the UST and FHFA to screw common shareholders for 10 to 19.5 % of equity.

Kthomp - you really need to think about the mechanics of a cramdown? When does the UST actually get the cash from the sale of stock? Before or after the GSEs get their regulatory capital? If it is after it is likely post Conservatorship - isnt it?

What about Underwriters liability for selling shares that are not legally owned by the UST post facto?

Will there be a Special Committee? Will the Underwriters require a Special Committee?

Will the Special Committee get a legal opinion that opines that the cramdown is legal?

What about a fairness opinion ?

How does Delaware and Virginia minority shareholder rights come into play pre and post conservatorship - especially if the UST sells their shares post Conservatorship?

Doesnt this seem like a whole lot for a bureaucrat who may loose their job in the next Administration?

[LuLeVan]

No JPS holder would object if the NWS were canceled by the courts. However, the Supreme Court's decisions to date don't make this outcome very likely. Because the government would not have the slightest interest in repaying the $61 billion that would be due.

Just saying maybe our JPS friends have jumped on the 'litigation is finished' bandwagon early

[skeptic7]

Thompson may be the biggest obstacle the GSE's will face. Courts are dead. Stop with this "litigation takes time" nonsense.