thought i’d pitch in my 0.02
my thesis is basically that the following two statements are true but my investment thesis only requires one of them to be true:
1. the entire conservatorship is based on false pretenses and is illegal. http://www.restorefanniemae.us/berman
2. the third amendment net worth sweep is illegal.
a. note that the reasoning for the implementation of the net worth sweep was that their profits would never allow the company to repay taxpayers and the following year the company was the most profitable company in the world’s history with world-record annual profits
b. note that there was a 12%PIK option and note that lamberth and john carney apparently are not familiar with PIK clauses
c. note that the 10% punitive dividend rate on the senior preferreds is the rate that was used to justify this sweep… and that for precident purposes, why doesn’t the government put other companies into conservatorship, force them to write down their assets and charge them the amounts they write down at a punitive interest rate, say 100%, and then unilaterally decide shucks, the companies will never be able to pay them back, institute a net worth sweep and then write back up their assets, locking in the grand theft
cheers from miami beach