kthomp19 makes a tortuous interpretation of the law and cover-up of facts.
HERA restricts the Capital Distributions for undercapitalized enterprises "in general", so the scheme of a Conservatorship doesn't invalidate this provision and also the FHFA's suspension of the capital classifications, primarily because it's a law that a regulator can't halt. FnF are undercapitalized just watching their negative core capital and the conservatorship was authorized in a provision for Critically Undercapitalized enterprises.
Thus, dividends are restricted. HERA allows capital distributions to repay the obligations with regard to stocks or ownership interest, that is, the obligations SPS. So, FnF have been paying off the SPS with each dividend payment to the UST and later, for their recapitalization, under an exception added by the FHFA in July 2011.
Also, kthomp19 doesn't get that the Conservator's Incidental Power to act in the best interest of the Agency, refers to the Agency as conservator of private corporations and, secondly, that sentence begins with "authorized by this section", which means that whatever action must comply with the rest of the section, which is the Conservator's Power to "put FnF in a sound and solvent condition", that means RECAPITALIZATION for people with knowledge in Finance, as Capital is the only measure of the soundness of a financial company.
Also kthomp19 misses that a conservator is a fiduciary, which is corroborated in HERA's succession provision.
As a fiduciary, the FHFA can't enrich the Govt using the shareholders' money or approve the Warrant.
A final cover-up of facts. Washington Federal does challenge the 10% dividend along with the Warrant and the initial $1 billion worth of SPS issued for free. It's explained very clear and it calls the 2008 Agreements "usurious".
The negative effect of the warrant (beneficial ownership under SEC regulation) is suffered by today's shareholders, so the judge must extend the Class Period through today.
