Fannie Mae-No Politics (FNMA)

[FOFreddie]

31 CFR 902.2 (d)

d) If there is significant doubt concerning the Government's ability to prove its case in court for the full amount claimed, either because of the legal issues involved or because of a bona fide dispute as to the facts, then the amount accepted in compromise of such cases should fairly reflect the probabilities of successful prosecution to judgment, with due regard given to the availability of witnesses and other evidentiary support for the Government's claim. In determining the litigative risks involved, agencies should consider the probable amount of court costs and attorney fees pursuant to the Equal Access to Justice Act, 28 U.S.C. 2412, that may be imposed against the Government if it is unsuccessful in litigation.

The UST could never prove its case in court based on the facts. It can only win if the facts are not presented.

The UST will exercise its warrants as TH has stated. How much will 20% of the GSEs be worth for legacy common.