Fannie Mae-No Politics (FNMA)

[DaJester]

"Let's take your position that it isn't illegal for Treasury to write off the SPS. Okay, then why haven't they done it already? "

Treasury has had no vested interest in releasing the twins. They had a cash cow and no legal repercussions. IF they do a write down (I'm not saying it's guaranteed action), it will likely have to do with politics and the optics of the situation based on whichever Administration is in place. On top of the billions overpaid, it's hard to justify the amount of time and additional money siphoned to the Treasury. The LP could reach half a trillion by the time they are released. That may very well feel like a taking, and there is already evidence of good faith breach. Makes it easier to highlight and fight as gross government overreach.

"why did Treasury amend the SPS to increase the LP in lockstep with net worth?"
This started before the jury verdict obviously. When it was 10%, any dividend not paid would go to increase the LP. Then it switched to NWS so the "not paid" part of the contract was moot. But then when FnF were allowed to retain earnings, the entire income amount that would have been paid in cash now falls into the dividends "not paid" category, so it gets added to the LP. Essentially the NWS is still there, just as an IOU.