16 Comments

Thanks for all you do.

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does the way Borden v. U.S. was ruled concern you?

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ROLG,

In canceling the Sweep can overpayment include a combination of tax credits and surrender of the warrants that were recently valued by the CBO at 13 billion on table S-10?

7) Treasury’s warrants to purchase 79.9 percent of the common stock of the enterprises expire after September 7, 2028. The warrants were valued at $13 billion at the end of 2020.

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ROLG,

Assuming we win on APA claim, what’s your expected time-fame on a suitable capital raise that entails settling with pfds by conversion to commons? In other words, can you envision us winning on APA but pfds languishing?

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I highly doubt SCOTUS grants relief outright, that being said it was very encouraging to even hear the liberal judges refer to this as nationalization. This one will be close

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Just listened to scotus audio again. Why do you suppose that no reference was made by plaintiff to the Treasury entering into the third amendment knowing that (a) gses were about to become profitable, and (b) the intent of sweep was to ensure they couldn’t exit c-ship? The opportune time to have made that point was when plaintiff made the point that Treasury threw the GSEs a life line.

Secondly, do you have reason to believe that scotus is aware of (a) and (b), and do you think they are aware that (c) forensic accounting shows that the entire c-ship was unnecessary?

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Best guess. Closer to 1 or 8 weeks?

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Great info as always.

Thomas asked SG to explain what would make a "direct claim?"

SG replied that..."voting rights" would cause a direct claim...? did the SG slip? Did he forget that the SPSA agreement along with dividends plaintiff was also deprived of voting rights?

Seemed to me that 3rd amendment will be deemed void ab-initio by a majority, I think a larger majority perhaps all will agree that APA allows shareholders aggrieved by administrative action to bring Direct Claims. I wonder if you could handicap the odds or valuation of the warrants if your guess on outcome is correct? Since common is trading at about 1% of what FNMA would be trading at with current share count at 15x earnings. It seems that the market is discounting 99-1 the possibility of warrants retaining full value. I imaging it is closer to between 10 or 20 to 1 based on how the questions before SCOTUS to SG Moopann were much tougher than to shareholder council who was mostly asked about remedy.

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Thank you for your efforts in providing us information and your take on things. It is very much appreciated.

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Nice work. I think the plaintiff's argument was that the carry out of the NWS is done by an unconstitutionally structured agency thus the plaintiff should get relief.

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