Replies to post #784550 on Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

It will be appealed for sure, according to this guy, who could be the next VP and subsequent POTUS.....

The Delaware Chancery Court’s decision to strike down Tesla’s deal with Elon is a threat to the future of capitalism. Courts shouldn’t second-guess the *business judgments* of boards to maximize shareholder value. Yet that’s exactly what Tesla’s board did here - successfully. pic.twitter.com/aU6DOOjfrl

— Vivek Ramaswamy (@VivekGRamaswamy) January 31, 2024

[kthomp19]

Some major precedent set by Delaware today.

Only if it doesn't get overturned on appeal.

Are we entitled to recission due to breach of fiduciary duty?

Doubtful, for three reasons:

1) Three different judges have ruled that FHFA has no fiduciary duty to shareholders, and none have ruled that they do.
2) Any suit against FHFA or Treasury would be moved out of Delaware state courts and into federal court. To get a suit in a Delaware court it would have to be only against Fannie Mae and not FHFA, which would probably be useless given that FHFA has been involved in every decision Fannie has made since conservatorship started. A suit against Freddie couldn't be in Delaware at all.
3) Lamberth specifically disallowed the plaintiffs to present a recission-based damage model in the jury trial because recission is equitable relief barred by 4617(f) in HERA. This isn't binding on any other courts but he is the only one to have ruled on that specific matter.