Replies to post #791018 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

and where do you see the next progress step?

[kthomp19]

I think suing FHFA for not acting in the interest of shareholders is too difficult to pursue, not enough legal merit to stand. There is nothing saying FHFA has to put shareholders first.

I agree. Three judges have already said that FHFA has no fiduciary duty to shareholders, and no judge has said that they do.

They can be sued for breaching contractual obligations with shareholders however, which is how we won the implied covenant lawsuit.

Kind of. It's the companies that breached the implied covenant. FHFA was only pulled in as a defendant because it was FHFA that made the decision on behalf of the companies to sign the NWS.

That precedence now paves the way for similar lawsuits should FHFA (and Treasury as the silent partner) conduct further behavior that thwarts the shareholders ability to reap what they are contractually permitted to.

What similar lawsuits? Give a specific example of something FHFA and Treasury might do in the future, what the claim(s) would be, who would be sued (if it's an implied covenant claim then it would only be the companies and FHFA, not Treasury), and what the plaintiffs would expect to recover. Be detailed.

Without such detail, there is no reason to believe that any vague threat of lawsuits should be taken seriously, either by FHFA and Treasury, or by any current/potential investor in FnF shares.