Fannie Mae-No Politics (FNMA)

[Wise Man]

Payment of Securities Litigation judgments, a capital distribution too.

A capital distribution aka dividends is not the same thing as a judgment being required to be paid.

It's the same thing. Number 3 added in the July 20, 2011 Final Rule into the FHEFSSA definition of capital distribution. A trap set by DeMarco that would uncover the Separate Account plan from the onset, with the dividend payments to Treasury and, later on, with the SPS increased for free. All of them capital distributions, restricted, and it's when the exceptions kicked off to legalize those payments.

If it's restricted (U.S. Code §4614(e)), is because FnF have to build capital in their Balance Sheet. It isn't neither capital set aside in an External Position at the Treasury Department, nor they can't set aside a reserve that hinders capital building, in light of the jury's verdict and the judge's order with an award of prejudgment interests, which is the charge seen in "other expenses" in their recent earnings reports.
It's a breach of the conservator's Rehab power as well, for depleting capital.
Accounting rules that compel FnF to record the likelihood of this payment, aren't an excuse. So, the felony has already been committed regardless that there's been no disbursement yet with the final judgment.
This is why last week I denounced that judge Lamberth has already committed a felony. Once this payment is disbursed, the blame is shared with the conservator.
I expect judge Lamberth to rescind his court order.