Fannie Mae-No Politics (FNMA)

[kthomp19]

192 million only comes out to .83% average for the Federal Reserve discount rate... I must be missing something because that makes no sense. I have it around 1.55% for the discount rate and prejudgment interest would be around 215 million.

I could understand being off 5-6 million but not 23 million...Anyone else do a calculation?

The numbers in Fannie's 10-Q were as of September 30 2023. That is 11 years and 44 days after the date at which interest started accruing (August 17 2012).

Interest of $192M on a judgment of $299.4M is 64.13%. Divide that by 11.12 (11 + 44/365.25) and that gives a simple interest rate of 5.767%.

Page 2 of Lamberth's order says:

The Court therefore holds that Plaintiffs are entitled to simple
prejudgment interest, calculated at a fixed rate of 5% over the Federal Reserve discount rate as of
the date of the breach, August 17, 2012.

The Fed's historical discount rate chart shows a value of 0.75% in August 2012. That would make the pre-judgment interest rate 5.75%. This is close enough to the number I calculated above that 5.75% is likely what Fannie Mae used.