Replies to post #765766 on Fannie Mae-No Politics (FNMA)

[kthomp19]

If FHFA and Treasury are plotting behind closed doors, how would you even know to file the injunctive lawsuit?

You do it right the hell now. No waiting, no hemming and hawing, nothing.

FHFA and Treasury already tipped their hand with regards to a senior-to-common conversion in late 2020. That is public knowledge now (thanks Mark Calabria!) and is what makes this specific scenario different than the other 1000 hypothetical ways that shareholders could be harmed.

It's the fact that nobody has filed for such injunctive relief that tells me that it's highly unlikely anyone ever will.

Challenging an SPS conversion today would not be ripe because there is no announced plan to do so.

Waiting until after the conversion to file a lawsuit just means the plaintiffs will be merely fighting over pennies in court. Such an after-the-fact lawsuit could not undo the massive dilution.



This is why any threat of a lawsuit over a senior-to-common conversion is totally empty. If doing it beforehand could work it would have been tried already. And waiting until afterward can't undo the dilution. The same logic applies to the warrants.

[EternalPatience]

You are wasting your time