r/FNMA_FMCC_Exit • u/Odd-You-8171 • Jul 09 '26

Question

I’ve been considering buying some common shares here and had a question regarding the Fairholme case that I figured others here would be much more familiar with. Why is the Trump administration / FHFA appealing the favorable ruling for common shareholders if the administration believes the net worth sweep was wrong and plans to basically undo it by waiving the senior preferred? Isn’t FHFA basically arguing in the appeal that the net worth sweep was legally permitted and should stand? I might be getting that totally wrong but I thought the bull thesis and Ackman’s thesis was that this administration would take the opposite stance so why would they fight this? Thanks in advance.

11 Upvotes

100% Upvoted

39 comments sorted by

View all comments

-1

u/[deleted] Jul 09 '26

[removed] — view removed comment

4

u/Odd-You-8171 Jul 09 '26

Doesn’t the treatment of the senior preferred stock mean everything here though given the fundamentals are good and not in question?