Thanks for the reply Barron - I dont think the Statute matters when it comes to calculating damages. The damages for FMCC Common and for FNMA and FMCC JPS was calculated on the change in stock price on the close of trading on the day before the NWS and on the Day after the NWS was announced in August 2012. I am not sure this is precedence but it will take a lot of money to bring a lawsuit and a lawyer considering the lawsuit will have to consider this in assessing the probability of success and expected net return from any suit. I owned FNMA and FMCC prior to Conservatorship and the share prices are close to where they are now. I can see the stock prices rallying from here if a Plan is announced to Exit and a plan to Exercise the warrants. Based on the Lamberth damages calculation formula there will be no legal damages from Exercise if that case is precedent.
$71,876 Theft (Seventy One Thousand Eight Hundred Seventy Six USD) wipes out $517.31 per share of common equity Fannie and Freddie.
Explained
Barron Quote: “ Nothing in HERA removes or supercedes the directors duties under the safety and soundness act. Federal law requires FNMA (whether by BOD or FHFA-C) to issue shares of common stock for "appropriate capital". Full stop.” End of Quote
Illegal Warrants Treasury Common Shares 4,603,542,119 Fannie Mae (cost $46,035) 2,584,067,576 Freddie Mac (cost $25,840)
0.00001 purchase price
7,187,609,695 total shares x 0.00001 = $71,876
$71,876 non-substantive price Treasury payment for 79.9 % of the entire market value of Fannie Mae and Freddie Mac. (will calculate market value soon).
WARRANT: Fannie Mae’s common stock outstanding 1,158,087,567 diluted by the warrants at 79.9 percent = 4,603,542,119 adds a total of 5,761,629,686 shares outstanding,
Freddie Mac’s common stock outstanding 650,059,553 diluted by the warrants at 79.9% = 2,584,067,576 adds a total of 3,234,127,129 shares outstanding.
The company gave away the Senior Preferred Stock for free along with the 79.9 % warrants to be purchased at a nominal price. The Treasury did not pay to the company a billon dollars.
Quote: “We did not receive any cash proceeds from Treasury at the time the senior preferred stock or the warrant was issued.” End of Quote page 25 Form 10K December 31, 2008
Quote: “If the warrant is exercised, the stated value of the common stock issued will be reclassified as “Common stock” in our consolidated balance sheet. Because the warrant’s exercise price of $0.00001 per share is considered non-substantive (compared to the market price of our common stock), the warrant was evaluated based on its substance rather than its form.” End of Quote
Calculation of Fannie Mae and Freddie Mac’s Net Worth combined Earnings Power, with calculated percent amounts of possible theft by the United States Treasury Department from Common Shareholders. (link provided below explanation of ownership).
Fannie Mae $280.27 per share intrinsic value $280.27 minus 79.9 % = $56.33
Treasury wipes out $223.93 per share of common equity.
Freddie Mac $367.19 per share intrinsic value $367.19 minus 79.9% = $73.80
Treasury wipes out $293.38 per share of common equity.
Combined $517.31 per share Fannie and Freddie
Fannie Mae net worth $95 billion / 1,158,087,567 = $82.03 per share plus earnings power $198.24 = $280.27 per share
Freddie Mac net worth $59.5 billion / 650,059,533 = $91.53 per share plus earnings power $275.66 = $367.19
? Form 10K 2024 Fannie Mae Net Worth $95.0 billion Fannie Mae common stock outstanding 1,158,087,567 Freddie Mac Net Worth $59.5 billion Freddie Mac common stock outstanding 650,059,553 EARNINGS POWER OF THE BUSINESSES Fannie Mae’s common stock outstanding 1,158,087,567 Net earnings $4.1 billion per quarter, $16.4 billion net per year. $16.4 billion net income per year / 1,158,087,567 = $14.16 per share of earnings,
PE Ratio of 14 x $14.16 = $198.24 per share intrinsic value.
Freddie Mac common stock outstanding 650,059,553 Net earnings $3.2 billion per quarter, $12.8 billion net per year.
$12.8 billion net / 650,059,553 = $19.69 per share of earnings
PE Ratio of 14 x $19.69 = $275.66 per share intrinsic value.
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