Fannie Mae (FNMA)

[contrarian bull]

Just not sending the payment would violate the law

I don't think this is true. If the full NWS dividend is not paid the shortfall is added to the liquidation of the senior preferreds, but no law is broken.

This could get interesting. If they don't pay the NWS it gets added to the liquidation preference. That reduces the net worth of f&f so they are still back to zero net worth.

If treasury chose to sue them for not paying when they could have - they will claim f&f violated a law which is already being challenged in court - so the new suit would be dependent on the outcome of the prior suits.

It wouldn't help their net worth, but it may help get the prior suits moving along. Or not... likely Treasury wouldn't bother to sue.

But f&f not paying would increase the federal deficit since the money is not coming in to treasury.

So much fun!