Fannie Mae-No Politics (FNMA)

[kthomp19]

I wonder if he anticipates that the JPS will be left to languish until some legal action forces the hand of Treasury/FHFA?

No, that's not what he meant. The sentence that footnote 6 is attached to reads:

As the objective is to eliminate ownership of any common equity by private-sector investors, the transition will also require that the current ownership of common shares (other than by Treasury) be eliminated.

This option that Layton lays out (a "Strongly Progressive Government-Centric Model") involves eliminating the existing commons completely. He thinks it might be "desirable for [the juniors] to be eliminated in some fashion to reduce possible legal risks" as well, but the legal risks he is referring to are those involved in making FnF completely government-owned.