Fannie Mae-No Politics (FNMA)

[GAK-]

I've been rethinking the lawsuits lately. Since virtually all direct claims have been denied, and only derivative claims remain, the overhang of these lawsuits may not be much of a deterrent to new capital, since any court wins by shareholders would benefit the companies (and thus new as well as legacy shareholderrs). Any backward relief would just redound to their benefit.

The only other issue would have to do with the FHFA removal clause. If it is struck down, the Director is removable (potentially by Biden), but that also should not affect new investors, if FnF are under consent decrees.

I saw Calabria remark that the FHFA is structured unconstitutionally, so from a philosophical angle, he would probably welcome a SCOTUS decision similar to Seila. This would "seal" the fate of FHFA as unconstitutional.

So, in the end, Calabria may actually be hoping for a Collins victory vs. Treasury, with the final stamp of approval from SCOTUS. But none of it particularly affects his timeline for recap and release.