Fannie Mae Preferred S (FNMAS)

[rosen62]

What vacating the 3rd may mean > Perry appeal

In a footnote (#9) they explain it as follows:

Vacating the Net Worth Sweep necessarily would require some action by the agencies to restore the Companies to the position they would have occupied had the Net Worth Sweep not occurred. The precise mechanics of that process can be resolved by the district court on remand.

One possible resolution would be for Treasury and FHFA to agree, pursuant to the Purchase Agreements, to allow the excess funds (over and above the pre-Net Worth Sweep 10% cash dividend) paid to Treasury under the Net Worth Sweep to be credited retroactively on a quarterly basis as a partial redemption of Treasury’s liquidation preference. If that happened today, approximately $152.6 billion would be treated as redeemed, and Treasury would have $36.9 billion remaining on the liquidation preference on which it could continue to collect fixed-rate dividends and would still retain its warrants to purchase 79.9%of the Companies’ common stock.

In addition, they ask the appellate court to rule on their own,

The court (Lamberth) repeatedly relied on those “irrelevant” records to make numerous factual determinations against Appellants. In doing so, the court trampled on important procedural protections, and gave this Court an independent basis to vacate the district court’s decision.