Fannie Mae-No Politics (FNMA)

[Bryndon]

What makes you think the USCFC has the authority or jurisdiction to recharacterize past NWS payments as paying down the seniors, in contravention of the original SPSPAs (which your case does not challenge) which say that FnF never had the ability to pay down the seniors?

We’re not asking the court to recharacterize the quarterly transactions under the net worth sweep. We’re asking the court to recognize a taking (i.e., NWS) of private property (i.e., the companies’ capital) for a public purpose (see Collins opinion) without just compensation. If we’re successful, this would lead to a valuation of that taking; my model simply provides a way to do that. It also provides a process for Treasury and FHFA to quickly and fairly retire the senior preferred shares while settling the net worth sweep matter once and for all.

If we’re successful, how do you see it?