Replies to post #780797 on Fannie Mae-No Politics (FNMA)

[JOoa0ky]

They did it to CITI and AIG... and the other 998 other bailed out companies. 101% legal.

[JosephS]

Citi charged 5%, no warrants. AIG charged more and diluted but no cship. Not the same. Cship coercion is not legal. They were solvent

[FFFacts]

This is a good point. A big difference between a conservator managing assets and an informal wind down or restructuring diluting equity stakes.

Dumb attorneys never challenged HERA as lamberth told them to. So of course scotus ruled based on the language in HERA.

[trunkmonk]

Kt@freak is one of the ones who said to attack with laser focus, not on HERA legitimacy. Bunch of dumb mental midgets, hiding behind the next bad move.

[kthomp19]

Didnt Kthomp19 mention that the Collin's decision gives the FHFA wide discretion over the Assets of the GSEs rather than the equity of the GSEs?

Since assets = liabilities + equity, and since FHFA has control over both the assets and liabilities of the companies, by extension it can be argued they control the value of the equity.

Does Collins reallly give the Conservator the discretion to cram down one class of equity to the detriment of another?

Of course it does. If the NWS is legal, a senior-to-common cramdown is super-duper-legal-plus because it actually helps the companies.