Fannie Mae-No Politics (FNMA)

[kthomp19]

Is 131B the amount paid over the 10%

"Over the 10%" could mean two things. If FnF had paid the 10% cash dividend every quarter, they could have done two things with the cash:

1) Put every penny over that towards paying down the seniors. Then the seniors would be gone right now and FnF would have $25B more in cash than they do now. That money is at Treasury now. The Collins plaintiffs' preferred remedy is to have the seniors deemed repaid/extinguished, and Treasury give FnF a $25B credit towards future payments, like income taxes or commitment fees.
2) Keep all the extra money. Then they would have $131B more in cash than they do now. The Collins plaintiffs' other proposed remedy is to have Treasury send that $131B back to FnF, but everything else would remain the same. Treasury's seniors, with their $199B liquidation preference and 10% cash dividend (or 12% in-kind) rights would remain fully intact.