Replies to post #768511 on Fannie Mae-No Politics (FNMA)

[EternalPatience]

Starting the post with 3 wrongs?

So you are showing that 2 can play this game?? I like it

[FFFacts]

You are wrong on this matter. The contract rights must be adhered to if there is an exit. The gubmint has temporarily ceded the rights of shareholders and has extended what should have been temporary. The contract rights are still valid if/when they are released. However the gubmint has all the cards and can provide an offer that preferred shareholders can't refuse otherwise they will be threatened with a longer conservatorship. Depending on what series accepts by greater than 2/3rds the holdouts could eventually be made whole.

[Donotunderstand]

You are not scotus, you are not a judge, and I highly doubt you are a lawyer. You can not say those contracts for JPS are bulletproof. Any idiot realizes they are not bulletproof just based on how judges are interpreting HERA. If government lawyers want to parse each individual word of those contracts to have a different meaning, they can. Hera over rides those contracts with the simple clause that FHFA ASSUMES ALL SHAREHOLDERS RIGHTS.

YUP
That is why - I often - try and advise BRADFORD that his JPS argument is not 100% air tight or waterproof. What can be done - with court approval - here with F and F and FHFA and HERA is all NEW and :'WHO KNOWS' territory --- with a so far unfriendly SCOTUS

[kthomp19]

You can not say those contracts for JPS are bulletproof.

Close enough. FHFA lost the ability to repudiate contracts a long time ago, and if they thought they could just ignore those contracts we wouldn't have heard Don Layton talk about how he and his team spent long hours trying (and failing) to find ways to circumvent the junior pref contracts.

Hera over rides those contracts with the simple clause that FHFA ASSUMES ALL SHAREHOLDERS RIGHTS.

I already wrote this post and this other post explaining why you're wrong here.

There's also the fact that when Treasury was discussing a senior-to-common conversion with FHFA in late 2020, their plan was to have the seniors and juniors convert at the same time. Why on earth would they allow the juniors to participate in the conversion if FHFA could just wipe them out with no recourse? The answer is that you're wrong: FHFA can't actually do that.