Fannie Mae Preferred S (FNMAS)

[44centsAKAchoccake]

"Discovery" is basically non-public, so I wouldn't expect to see any substantive Gretchen Morgenson articles any time soon. Still, it does signal that people are watching, so it definitely does help.

I don't think Judge Sweeney will "turn it down." I'm not a lawyer, but I suspect the NYT will eventually be able to see some stuff, but with confidentiality protections in place. So, similar to the Plaintiff attorneys, the NYT attorneys would see stuff but would have to keep their mouths shut publicly. I'll talk to a lawyer about this next week.

Basically, "discovery" typically becomes public as it is filed as exhibits and so on in an actual court proceedings. There likely will be a court proceeding, but not for a year or two.

God only knows that the preferred holders are the ones driving the litigation, not the commoners. A deal that takes the preferreds to RV but leaves the commoners about where they are could happen, i.e., leave the 3rd Amendment in place but allow the preferreds to receive their dividends going forward. I think more and more the gov't will be ok with a narrow settlement to get rid of these litigation.

Litigation related to the commoners would continue under that scenario.