Fannie Mae-No Politics (FNMA)

[kthomp19]

Just to clear things up, as a result of this verdict:

1) The SPSPAs and all amendments are still in effect.
2) The senior prefs are still intact at their full liquidation preference of $298B.
3) FnF still have hugely negative core capital.
4) FnF are still hundreds of billions below their statutory capital requirements.
5) The President still has full control over recap/release due to having the ability to fire both the Treasury Secretary and FHFA Director at will.

The ONLY result is that FnF will owe around $600M (perhaps more if interest is added on) to shareholders. That's all.

FNMA lost 6 cents on August 17 2012 while FMCC lost 7 cents. FMCC got an award of 5 cents (not sure yet whether that includes interest), so FNMA holders get anything at all - which is not certain - it should be 6/7 of what FMCC gets.