Replies to post #747150 on Fannie Mae-No Politics (FNMA)

[sortman]

Currently common market value is approximately $900 million. If after restructuring old common owns 1% of a $250 billion company that is $2.5 billion value, a 3 times return. No way to sue if the price increases to $1.50 per share.

[The Man With No Name]

The damages for taking would be the loss suffered from the day the takings occurred.

So... if cramdown happens today.... and it drops from 47 cents to 1 cent... you'd get back a grand total of 46 cents...

To vegas ya go...

It's quite funny actually. But when a company issues more shares....it's not a taking. The Boards may even sign off on it....it would be in the best interests of the companies. Fiduciary duties and all that stuff.

ZERO liability and/or cause of action for any conversion.

[FOFreddie]

The cash from the cramdown will go to UST when the stock is sold. If the UST sells 90 % of a GSE for$90 billion then the potential damages are $ 10 bn. That is the change in market value. It has nothing to do with today's prices and any takings action will not be ripe until the shares are sold by UST. It will be very easy to calculate the change in market value due to a takings because it will be a portion of the cash received.

The UST will not sell any shares for year's so we have no idea what the potential damages will be and probably there will not be one because there will be no cramdown. Right now it seems like we are talking about the bogeyman when we all should just get along and advocate for shareholder interests in general.