Correct. The government can only claim common dividends on its 79.9% common stake if JPD gets paid first. This is what Perry asserts in its suit, namely that Amendment 3 was imposed in part in a discriminatory action to seize all dividends for itself via an illegal taking and self-dealing. As such, it was a ploy to cheat junior preferred shareholders from reasonable expectations of dividend payment under the terms presented for investors as contemplated by the preferred share prospectus.
Most all of these consolidated actions specify damages only for plaintiffs and only for specified dates of share ownership. Latecomers to the "party" would not share in any such pool. However, those that purchased shares at greatly devalued acquisition costs would be entitled to any restored dividend, just like any other preferred shareholder.
The math on JPD is actually pretty amazing for investors seeking yield. The all-in dividend, as once was a reasonable expectation before 2008, would carry a $2.06 annual coupon on a $25 par issue. That $2.06 would be paid, whether you bought shares for $25 or at $1 around August 17, 2012. So players like Fairholme are less interested in whatever portion of any surplus gets remanded to the entities than they are interested in restoring capital to get the junior divvies back on track.
I am sitting on a boatload of FNMAS at an average cost of around four bucks. A fully restored JPD would net an annualized yield of over 50%. Even a partial JPD @ $1 would yield about 25%. Per year. So I look at restoration of JPD as substantially more important than just the 5-6-bagger on elevated S/P that I keep hearing is a lousy bet vs. commons going to some ridiculius stratosphere like $379 per share.
The real fly in the ointment is in the warrants dilemma. Common investors are all lathered up that warrants (and subsequent dilution) must be cancelled. But government is much more likely to "play ball" in restoring JPD IF warrants are retained, paving the way for some on-going opportunity for flow-back to UST after having had a taste of flesh and budget relief for all or many of the FHFA years on top of the Twins.
JMHO.
