Replies to post #2612 on Fannie Mae Preferred S (FNMAS)

[Joe Stocks]

Why couldn't the divy be claimed to be just a fee for the use of funds? Still, whatever, someone has to show damages to file suit within the statute of limitations (SOL). I don't see any shareholders getting up and doing that. Obviously the government doesn't have any motivation to provide a remedy within the SOL if it sees no wrong.

[jwnoble3]

The restoral of Jr Pref divis could be done by FHFA, possibly even the GSEs board if the continued timely payments are made to Tsy. Jr pref redemption, purchases, retirement would need Treasuries written consent (not Demarco or Congress).

"In accordance with the Senior Preferred Stock Purchase Agreement, until the senior preferred stock is repaid or redeemed in full, Freddie Mac may not, without the prior written consent of Treasury, redeem, purchase, retire or otherwise acquire any Freddie Mac equity securities (other than the senior preferred stock or warrant)."