Further lawsuits from the companies against the government. You know, lawyers on behalf of FF.
"Lower courts agreed with the government that the shareholders lacked the right to sue because their lawsuits amounted to an allegation that the companies had overpaid the Treasury, and only Fannie and Freddie could sue to recover that money."
^basically creating lawsuits like this.
The entire premise is to secure end to conservatorship companies agree to warrant exercise and agree to give up further claims such as the one I posted above in exchange they write down liq pref and agree that senior preferred are paid in full from $$$ taken previously.
serious question - just interested in your answer --- but
Do you assume a "conversion" of the LP/SP to commons - to the point where commons are say 1% of the ownership - would happen without a lawsuit -- and thus with appeals - likely a 2 year delay? I assume that current court arguments have run their course - and to my dissapointment the GOV beat us up in court after court
But if the GOV took 99%-100% ownership of Fannie - do you really not assume that common equity would sue and sue and sue and such action would not move forward with massive litigation - as THEN the arguments get cleaner and sharper on the EVIL action of the GOV - as they fully take over a private company - making a fortune of profit each year
Might I suggest - that not understanding any effort - steps to "conversion and massive dilution" by GOV (be it R or D) would take at least two years to clear the courts and the common might just win BIG and BIGGER this time ? Thus it is possible my kids will deal with some of this stock
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