Replies to post #749772 on Fannie Mae-No Politics (FNMA)

[Barron4664]

Sorry to tell you you are wrong in your analysis. These are all just words on a page. In no way does any of the SPSPA agreement language square with the charter act prohibition of a fee by treasury or any other agency or department of the Gov. As Lamberth likes to say “clear as day”. The seniors can be paid off for $1000 per share. In no way is the liquidation preference “equity”. It is an illegal commitment fee. Until either treasury returns all of the money under Wiseman’s super secret separate account plan or someone challenges the Treasury’s unconstitutional and illegal commitment, there will be no restructuring of any kind and no exit from conservatorship. Oh and by the way as defined in the SPSPA the warrants are part of the commitment fee in consideration to an initial $100 billion commitment that Congress did not authorize under HERA. Stop perpetuating a fraudulent transaction.

[Rodney5]

Quote: “Section 8(b)(iv) only applies if FnF had been able to pay down the seniors, which they never could.” End of Quote... Wrong!

Over $301 Billion has been sent to the Treasury. Over and above enough money to pay off the Treasury.

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. AND BY SWEEPING THE NET WORTH THE COMMITMENT CANNOT BE TERMINATED.

Again,

The Third Amendment cannot be used to wipe out the 10 and 12 percent dividend rates in the initial stock certificates. IT DOES NOT MATTER if the Third Amendment Net Worth Sweep is declared legal or illegal, THE DAMAGES ARE the extra payments to Treasury must be treated first as though they were a return of capital that calls for a dollar-for-dollar redemption of the senior preferred, thereby reducing the Treasury’s liquidation preference. Once all those shares are redeemed, the remainder of the money paid over to Treasury should be treated as excess payments that must be repaid in full to Fannie and Freddie with interest.