Replies to post #797788 on Fannie Mae-No Politics (FNMA)

[The Man With No Name]

Your understanding is wrong. All of it.

[bradford86]

They said the nws was a breach of contract. Breaching contracts is not illegal

[Wingsjr]

Anyone think that if the NWS was validated as illegal and the government had to return the profits that it could trigger the Warrants? They (Gov) could argue that the taxpayers were not paid back. This could be a, careful what you wish for moment.

[DaJester]

Rodney, I'd have to go back and read the ruling. But I believe you are correct, in that the SCOTUS is basically just saying the NWS was not ultra vires, therefore was within the power of the FHFA. That argument was dismissed. What I'm saying is that just because something was within their power to do, doesn't mean that there isn't harm done which must be compensated for, or can therefore be pursued in civil court. Which is exactly why we have the Lamberth decision. Just like the govt can put a road through your yard, it is within their power to do so. But they need to pay you fair value for what they took.

The FHFA can continue to breach the shareholder agreement, it is within their power to do so. However, they would still be on the hook for any damages as a result. Just because they breached the contract once and have to pay for it, doesn't mean that all subsequent breaches are "free".