Replies to post #758037 on Fannie Mae-No Politics (FNMA)

[stvupdate]

The reality is that Treasury and FHFA don't want to do anything until 2028.
So All of the theories regarding possible solutions are useless.It's either trump in 2025, or warren davidson &k could change it.

[kthomp19]

It is one of the most profitable companies globally.

This is irrelevant when it comes to FnF's status in conservatorship, huge regulatory capital deficits, and the coming dilution.

If they would have diluted it, it would have already been done.

Nope. Treasury won't exert its dilutive power (warrants, senior-to-common conversion) until the government is ready to relinquish control. That was their playbook with AIG and it will work the same with FnF.

The problem is figuring out a way to legally do so.

A senior-to-common conversion is perfectly legal.

It is unprecedented, wiping out shareholders of a highly profitable company.

So what?

The fact that FnF are highly profitable means Treasury is more likely to convert the seniors to common, not less.

It goes against the very fabric of this nation.

Hmm, I might have to add "appeal to patriotism" to my list of logical fallacies to watch out for.

[ron_66271]

Life, Liberty, Property!

The True Fabric of Your Construction.

The Conservatorship is a Fifth Amendment Takings from the shareholders by the government.
Just Compensation is due.

The Nationalization of personal property is illegal.

Just like WaMu; 5AT, “Willful Misconduct”.



Ron