Replies to post #760090 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Nonsense an injunction can happen as soon as the lawyer hears a plan to that converts the warrants

Here's the text of 12 USC 4617(f)

(f) Limitation on court action

Except as provided in this section or at the request of the Director, no court may take any action to restrain or affect the exercise of powers or functions of the Agency as a conservator or a receiver.

From the Supreme Court Collins opinion:

The “anti-injunction clause” of the Recovery Act provides that unless review is specifically authorized by one of its provisions or is requested by the Director, “no court may take any action to restrain or affect the exer-cise of powers or functions of the Agency as a conservator or a re-ceiver.” §4617(f). Where, as here, the FHFA’s challenged actions did not exceed its “powers or functions” “as a conservator,” relief is prohib-ited.

They referred to 4617(f) as "the anti-injunction clause". That means it stops injunctions.

Your only hope for it to not apply to warrant exercise or senior-to-common conversion is for a court to hold that those things actually exceed FHFA's powers or functions as conservator. But FHFA as conservator controls all actions of the boards of directors, which include the ability to offer the conversion.

If you try to get an injunction against warrant exercise you will be laughed out of the courtroom. The warrants have existed since 2008, do you honestly expect a court to accept the argument that you never expected Treasury to actually exercise them?

To truly stop the warrants from being exercised you need to file an injunction before they are exercised. The fact that nobody has done so yet speaks volumes.

And please stop the nonsense that the SC’s decision to uphold the NWS has anything to do with the warrants or conversion…

It's not nonsense at all. The NWS hurt the companies themselves and the Supreme Court said that's okay. Treasury exercising the warrants and/or accepting a senior-to-common conversion hurts absolutely nobody other than legacy common shareholders that have no voice and no vote. The conversion actually helps the companies because it increases all forms of regulatory capital by $193B in an instant.

[The Man With No Name]

Haha, yeah whatever. The day can't come soon enough....just so I can see the meltdown. AIG anyone?