Replies to post #753485 on Fannie Mae-No Politics (FNMA)

[JOoa0ky]

Rights of JPS are contractual rights.

Contractual rights have been transferred to the FHFA

The FHFA as holders of those contractual rights can do anything they want to; as of yet there has been no containment of what will the government can endeavor here.

Thus if the fhfa decide its in their best interest, the interest of the public it serves, or because the "sky might be blue" to redeem them at 1/10000th of face they simply can. If they want to convert them to common at similar ratio they can. As the fhfa has 100.00000% of the rights of jps including the ability to amend their "contract terms" at Anytime they wish.

Got it.

There is no safety in jps... zippo... while their upside is capped.

Thus we are in the very same boat as previously explained.

If FHFA can do as they please by redeeming JPS at 1/10000th of face they would've done so and SQUASHED the Lamberth trial.

They could not which is why it is still ongoing.

If your theory is correct, they can void the upcoming RE-JURY.


**The rights that were transferred were the RIGHT TO REDEEM AT PAR**

Aside from that you need to understand why commons have not been diluted to oblivion right now and also why JPS have not been redeemed.
- Converting SPS to common at the moment will push the Govt ownership stake to beyond 79.99% which means they need to start the conservatorship exit.
- On the other hand if we say you are correct and JPS can be redeemed at 1 cent, that does NOTHING to affect the govt ownership stake beyond 79.99%. They would've done it eons ago if they could but they CANT.

[kthomp19]

Rights of JPS are contractual rights.

Right.

Contractual rights have been transferred to the FHFA

Wrong. If this were true, the trial in Lamberth's court would have never happened.

Thus if the fhfa decide its in their best interest, the interest of the public it serves, or because the "sky might be blue" to redeem them at 1/10000th of face they simply can. If they want to convert them to common at similar ratio they can. As the fhfa has 100.00000% of the rights of jps including the ability to amend their "contract terms" at Anytime they wish.

1) If this was possible, FHFA would have already done it rather than defend all the various lawsuits for years and years. Especially the one in Lamberth's court.
2) This would not be a valid act of a conservator (violation of 4617(d)(2)), meaning 4617(f) doesn't apply and the whole "FHFA can do whatever it wants" argument falls flat.

Your list isn't facts, it's wishful thinking.

There is no safety in jps... zippo... while their upside is capped.

Wrong on both counts. The contract rights, already affirmed as being in place in Lamberth's court, do matter, while the upside cap can be removed by a junior-to-common conversion offer.

You also said "There is absolutely no safety in jps and only a smidge less in commons.", which makes no logical sense. How can the commons have negative safety?

Thus we are in the very same boat as previously explained.

The juniors are on the deck and the commons are in the hold. Being on the same boat does not at all guarantee that if some go down then all go down.