Fannie Mae-No Politics (FNMA)

[RumplePigSkin]

What? Another Jan oldie?
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Happy, technically the NWS is done. It is the liquidation preference you need to focus on.

There is a big difference between the NWS and sweeping all quarterly profits to Treasury vs increasing dollar for dollar the liquidation preference of the sr preferred shares.

There is no quarterly sweep, and it is important to remember that what just happened is exactly what the 5th circuit en banc said was enough remedy.

The remedy Collins asked for in the 5th circuit was to zero out the sr preferred shares (liquidation preference) and cancel the NWS going forward. The 5th circuit only granted remedy on the NWS only. Both items are being asked at Scotus and what Mnuchin did was force Scotus to see the remedy granted by the 5th circuit does nothing to allow the companies to get any closer to release.

It’s clear as day that part of the intent of the most recent “amendment” was to draw the vast, huge contrast of what just a cancellation going forward of the NWS does (which is absolutely nothing) vs writing down the liquidation pref and cancelling the NWS. It can’t be any more clear.
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