Replies to post #765966 on Fannie Mae-No Politics (FNMA)

[The Man With No Name]

And I think your suggestion to make reparations to pre-'08/'12 shareholders rather than let the claims travel with the current securities would set a moronic precedent and upend distressed debt markets. That sort of action has no basis in history or finance.

It is standard in securities class actions.

[kthomp19]

Respectfully, the worst part about your analysis (which I do otherwise enjoy) is the baseless claim to moral superiority.

I haven't claimed moral superiority. I said that Bryndon Fisher has, and I believe he is completely unjustified in doing so. Especially all of his rhetoric around the imposition of conservatorship given that he bought his shares after 2008.

And I think your suggestion to make reparations to pre-'08/'12 shareholders rather than let the claims travel with the current securities would set a moronic precedent and upend distressed debt markets.

I fully agree. Legally and practically it would be an absolute nightmare.

One main purpose of my critique of Fisher's paper is that it conflates what is legal with what is moral. Those two things can and do differ greatly.

His "plan" would involve someone who bought shares for the first time immediately prior to its fruition making a ton of money, while those who actually held shares on the date of conservatorship and/or NWS but didn't have the ability or wherewithal to keep holding them for 15+ years get frozen out. I get that that's legal, and any other way of doing it would upend the markets. But I can't call it "fairness" or "justice" by any definition of the word.