But most members there want us to write senators and to join Class Action suits against management (which at best would yield a few hundred dollars)
I instead think we need a constitutional lawyer filing a lawsuit and seeking an immediate injunction against the government: I posted this on the site (message 96): Quote Let's seek an injunction to stop the government seizure
In my opinion we need to a file suit and seek an injunction to stop the illegal seizure of the GSEs. To sue the former management will only yield pocket change. Time is of essence to stop the government before FNM/FRE become accepted as de facto new government agencies while the money of the stockholders have been confiscated. Here is a link on the subject: http://www.godlikeproductions.com/forum1/message602859/pg1 But of course we need a good (expert in constitutional law) firm to do this on our behalf and quickly. Any ideas how to move forward with this? Unquote FNM was set up as a GSE under a congressional charter to promote affordable mortgages in a private form with an implicit guarantee of the debt by the government. In recent years government officials encouraged (even strong-armed) FNM to aggressively buy loans in order to promote home ownership for the masses. The government (supposedly tightly) supervised and decided on capital ratios required for FNM. The government did nothing to stop abusive short selling (coordinated with media attacks) that created a crisis in confidence in FNM debt and made capital raising almost impossible for the GSEs. When FRE found it could not raise capital and asked the Treasury for help not only was FRE seized (in a totally arbitrary procedure without legal process) but FNM as well that was still in a better capital position than FRE. Of course the whole thing seems even more absurd now when the government is willing to help fully private firms by buying toxic debt. It is really sickening to realize all FNM debt holders (even foreign) except preferred share holders were saved by the government and that preferred holders of other fully private institutions (BSC, MER and so on) except LEH have fared better than the preferred shareholders of the GSEs. Even AIG fared better because they are still a for profit company (not like FNM now a quasi welfare government agency to promote the goal of affordable mortgages over profits).
I am pessimistic but we need to try something. I put a lot of faith and money (150K) into FNM pfds in my IRA account in order to have a steady income as I approach retirement. Maybe we should contact a good lawyer that have successfully pursued public domain cases that have fought the government to stop abusive behavior and to protect private property rights? Anyone knows a specialist lawyer in this field?
This, or something like it sounds like a good idea - forcing the courts to rule on the legality of arbitrarily preserving the value of some investors, while not preserving that of others. I am only out about $7k at this point, but I'm still holding on, hoping that eventually some sort of dividend will be preserved. I'm annoyed that the government is getting 10% on its new ultra preferred shares, though, while mine are now getting zip.
good luck on that, but you will never get a dividend again, why would they pay you a dividend? The shares aren't cumulative, you will never see it. I sold mine and took quite a loss. If they were cumulative preferreds they couldn't have done this, the government took advantage of the fact they these were supposed to be supersafe hence the non cumulative nature of them. That in itself should be the lawsuit. But how do you get 36 billion worth of preferred back to the rightful owners?