Fannie Mae-No Politics (FNMA)

[kthomp19]

Bryndon Fisher is bringing a Derivative Suit so the UST would recover any damages on a 80/20 basis.

Fisher's suit is basically dead at this point. The corpse just hasn't stopped twitching yet. I wouldn't count on anything of value coming out of that case.

The GSES would optimally benefit because they would help build capital and do it in a way that does not cram down existing investors.

The purpose of a derivative suit is only to help the companies. A senior-to-common cramdown helps the companies, because it increases their regulatory capital by $193B.

In the end the UST would be only out the 20% that would accrue to existing common

Even that 20% would be subject to dilution by a capital raise and a junior-to-common conversion. I wouldn't fixate on 20% too much.