Fannie Mae-No Politics (FNMA)

[Here I am]

None of you have posted Judge Willett's best quotes in his dissenting opinion one year ago:

The NWS strips the GSEs of their capital reserves.

A

transfer of capital to Treasury.

This

is incompatible with its statutory charge to work to restore a regulated entity in conservatorship to a sound and solvent condition.

He understands that a dividend is a capital distribution and, thus, he could say the same with the 10% dividend required to be restored by the Plaintiffs, who are junior preferred shareholders and not FnF shareholders.
Therefore, the outcome will be that none dividend is allowed while in Conservatorship. Curiously enough, it's the same set forth in the law and regulations. This leaves the government with no other option but to announce The Secret Plan: the dividend is applied to repay the obligations with the Treasury (SPS) and recapitalization, pursuant to the exceptions to the restriction on Capital Distributions in HERA and CFR 1237.12.

IT IS SO ORDERED.