Replies to post #749544 on Fannie Mae-No Politics (FNMA)

[Rodney5]

trunkmonk I’m thinking

JUSTICE BREYER: Quote: “Thank you. I think in reading this you could, with trying to simplify as much as possible, do you -- the shareholders' claim as saying we bought into this corporation, it was supposed to be private as well as having a public side, and then the government nationalized it. That's what they did. If you look at their giving the net worth to Treasury, it's nationalizing the company. Now, whatever conservators do and receivers do, they don't nationalize companies. And when they nationalized this company, naturally they paid us nothing and our shares became worthless. And so what do you say?” End of Quote, page 12

Link: https://www.supremecourt.gov/oral_arguments/argument_transcripts/2020/19-422_3e04.pdf

Someone said on this board that Breyer voted right along with the rest of the judges.

My answer to that…

“Optional Pay Down of Liquidation Preference”

It cannot be argued, Fannie Mae and Freddie Mac were never provided with a mechanism to emerge from conservatorship. The SCOTUS ruled the Net Worth Sweep was legal. The SCOTUS did not rule the Optional Pay Down of Liquidation Preference as being void. No, it is not void, the court did not say it was void.