Replies to post #790888 on Fannie Mae-No Politics (FNMA)

[The Man With No Name]

Emotional nonsense

[Donotunderstand]

DaJester

so you are "also" saying there was no breach with Treasury as they are not the defendant?

I do confuse easily --- but --- I assume the defendant was FHFA acting on behalf of F and F - so in essence F and F (which as separate companies issued common and JPS stock) were the real defendant

(even if in a contrived structure due to HERA)

If yes - what opportunities close or open up - in your opinion e.g. Sue FHFA for not putting our interests first when that is their job as they stand in for EQUITY of F and F ? Sue Treasury for bullying the BOD of ?

[kthomp19]

Yes, you are correct the implied covenant is not with Treasury. That's really not the point.

It is absolutely the point. Treasury faces no liability from the implied covenant lawsuit over the NWS, and would face no liability from any future implied covenant lawsuit because Treasury is not a party to the shareholder contracts.

Notice that FHFA, even as a defendant in the implied covenant case, faces no liability at all. The entire jury award will be paid by the companies.

Treasury and the FHFA were not operating at arm's length. The agreement was constructed with both parties in bed.

Now that the President has at-will authority to fire the FHFA director, this is far less relevant than it used to be.

The predatory nature of the contracts were not the fault of the GSEs; it was FHFA and Treasury. Everybody on this board knows this.

But Treasury is not a party to the shareholder contracts, and therefore cannot violate the implied covenant.

Why you are even arguing this point is ridiculous.

You are mischaracterizing what I am arguing. The second sentence I wrote at the beginning of this post is my point. No implied covenant lawsuit in the future will ever get a single penny out of Treasury.

I haven't heard anyone argue that FHFA constructed the best possible agreement they could, and it just happened to create a windfall for Treasury. This ENTIRE CHARADE is designed by all government parties involved to siphon money to Treasury (and attempt to completely shut down the GSEs).

Look. All of the takings and APA claims cases have been dismissed. The government robbed the bank and got away with it. We live in a banana republic blah blah blah.

The only thing you can control here is how you invest your money. The sooner you start seeing things as they are, and not as you wish them to be, the sooner you will make better decisions.

When/if another shareholder breach occurs, which I expect it will... It will be easier to call out the raping and pillaging of the shareholders because 1 jury has shined the light on the behavior.

If the new suit is an implied covenant suit, any damages will be paid by the companies, not FHFA or Treasury. And if it isn't, then the jury verdict has no precedential power at all.