Just wanted to start a discussion on FNMA/FMCC. For those who have not followed... here's a brief history (taken from a linked article):
"Since 2008 the government has taken over $108B from Fannie Mae and Freddie Mac through a process known as conservatorship where FHFA and Treasury enter into and modify government contracts.
Private shareholders are contesting the legality of the government's actions and the government is making various defenses in various courts.
If shareholders prevail, the securities have value because profits would accrue to their operating entities, but if they don't the shares are worthless."
Shareholders (including Perry & Bruce Berkowitz among others) are in litigation claiming the sweep amounts to a breach of contract and illegally taking of property. Additionally Bill Ackman is (was?) bullish on FNMA and believes it could be worth between $23-$47 apiece if the agencies are allowed to recapitalize and operate as independent entities. "It's Time to Get off our Fannie" - Pershing Square presentation attached.
I'm personally long a little over a thousands shares of FNMA, pretty much as a lotto.
Some interesting and more detailed insight:
Article released today: