Fannie Mae-No Politics (FNMA)

[LuLeVan]

The Lamberth trial will be repeated no later than the end of Q2 2023. If a jury trial ends as a mistrial (happens in 5% of cases), there is almost always a decision at the retrial. The jury could, of course, decide against the shareholders. However, Lamberth's greatly reduced damages (only compensation for the stock price decline on 8/17/12) are so small that a convinced jury should swallow them. And the government could live with it, too, because it doesn't cost them a cent. The damages are paid by FnF or the FHFA - and the total amount is only about $2.6 billion, equivalent to just 1.5 months of FnF net income.