Replies to post #810251 on Fannie Mae-No Politics (FNMA)

[trunkmonk]

for 15 years CorkerPorker and all that were before and after, wanted commons to vaporize. Corker even said publicly that one should be shorting GSEs, thats where value will come in later, maybe I sue him personally for attacking my investment as a sitting senator, if the slime is still alive. They hate common shareholders and never thought it would survive. Pags and his little Cato buds tried so hard to steal commons in any way possible by Recievership and all sorts of lies about how bad they were performing, the death spiral financing SM did on the way out the door was as illegal as it gets, i may go after him too in court, I dont know, we see. they are sick hate filled bunch of degenerates.

[FOFreddie]

Hi Nats - totally agree with you on using this Board as part of our due diligence. I have tried to be constructive all shareholders common and JPS even though I have owned JPS since 2008. We need to be advocates for fairness. I was a common shareholder in 2008 and I would have jumped at a bailout that resulted in a value of $ 30 or so in fall of 2008. There was no confidence in the financial system at that point and the GSEs seemed to me to the most solid financial companies in the market but a USG bailout was necessary. We should have got the same deal as Citibank and the others. I have made a point to show how the UST and NEC screwed commons with the leak of the Barrons article but the reality was that the financial markets had no confidence and that the only way to raise capital was via high coupon JPS like FNMAT at the time. I cant remember where common was trading prior to the Conservatorship but I think it was single digits. We all should be compensated for the rip off over the last 15 years but I don't see a scenario where FNMAT would get made whole for the lost dividends over the last 15 years - this was already litigated in the Lamberth decision and was decided that damages had to based off changes in market value. What would the damage model be for a taking on the exercise of the warrants? Wouldn't this suit have to be in the COFC? - based on what we know it seems like this will be difficult based on our experience with Judge Sweeney - she knew how we got screwed but ultimately, she was reversed on appeal. Based on what I have seen - we should have low expectations for success in the COFC.

[kthomp19]

I agree that we know with absolute certainty that some law firm, somewhere (probably K ST), will challenge the warrants once they are exercised. There is simply too much money involved to ignore it. This is regardless of the merits. That's why God or Gore or someone invented lawyers (or was that the internet). And if they win, so much the better. But in the meantime, I would not bet my Roth IRA on winning. Any realistic estimate of the value would include warrants - as Ackman has.

I totally agree. It's not about whether lawsuits will be filed, it's about whether there is any reason to believe they will succeed.

Since the takings cases against the NWS all failed, I can't see any takings cases over warrant exercise (or even a senior-to-common conversion) succeeding either.

And I think he is just as realistic in not including the Seniors.

I was with you until here, but our difference of opinion here has been rehashed many times before