Fannie Mae-No Politics (FNMA)

[YanksGhost]

<< re: Collins en banc payment to shareholders... >>

Sorry I was busy, but meant to get back to you on this conversation from yesterday. I am suspecting that the incredibly lengthy delay in the en banc ruling may be from both parties informing the court of settlement talks in progress. This could also explain part of the commentary on settlement in the AB Alert link I posted recently that specifically mentioned this.

My guess is that a Collins settlement would end the NWS, go back to the 10% divvy days and apportion some of the $16 B in NWS overage as back JPS divvies or some one-time special dividend and return any remaining balance to the GSEs for recap.

The one earlier example I can recall was the Edwards v. Pricewaterhouse Coopers case that was settled with prejudice and the terms of settlement sealed by the court... meaning we may never know what the plaintiffs got. It is possible since Collins is not a class action filing that only the named plaintiffs get a share of the $16 B and other JPS shareholders simply get an end to the NWS, going forward.

Just speculation...