Fannie Mae-No Politics (FNMA)

[FOFreddie]

I agree with your interpretation of the Lamberth case. FMCC was paying $.50 in dividends prior to the Conservatorship but it seems hard to make the case that they would have been paying a substantial div on common in the midst of a financial recap. Perhaps $ .50 to $ 3 to FMCC common in damages - perhaps nothing

We will have to rely on the 5th Circuit or Ropp and Bhatti to get the SPS written off.

The best thing we have going for us is the underlying facts and the limited time to get the Utility model done in a recap that can not be unwound by DJT II. If the UST wants to maximize the value of their stake they should settle and issue equity as soon as possible before the ROI required by new investors goes up as interest rates rise.