Fannie Mae-No Politics (FNMA)

[Mnemonic]

Judges think that transfer of net worth to Treasury means that dividend claims are derivative. That's so ridiculous.

Judges miss the point that harm to the corporation is independent of whether they pay those dividends to Treasury or JPS. Basically, the GSE's money went out the door. Shareholders were entitled to a piece of the money that went out the door. Harm to the corporation stays the same. This is about as direct as it gets.

That said, if FHFA had paid the original 10% and then paid a dividend to JPS, the corporation would have had more money as well, but that money is not what JPS were asking for during that portion of the complaint. Just the divis.