Fannie Mae-No Politics (FNMA)

[Wise Man]

BOOM. Judge Lamberth caught preparing his alibi in Fanniegate.
The felony already occurred. Due to his order granting prejudgment interests award, in light of the jury's verdict, FnF have already had to deplete their capital by setting aside a Reserve in "other expenses" in the Q3 Earnings reports, which breaks the Restriction on Capital Distributions and the FHFA-C's Rehab power.
His only defense, like many others, is playing the fool: "I knew nothing".
In his latest court order, not only he compels FHFA's Sandra Thompson to file either a joint plan of allocation or in a separate report, when a Defendant has no say in a plan of allocation, as the Plaintiffs stated in their latest brief, but also the judge seeks to emphasize that the court is here to help:

if the parties have concerns for which they seek resolution by the court,....

Notice that the judge specifies that

the parties shall submit a written report

Because presumably, the attorney for the FHFA already informed the judge the day of the verdict, that this is a restricted capital distribution, in an oral motion to defer entering judgment, that the judge granted.


A plan of allocation is straightforward: how the capital of FnF is distributed among the attorneys and the Class members.
What it looks like, is judge Lamberth asking Sandra Thompson:

Are you sure you don't have something else to tell me?
About capital distributions being restricted when FnF are undercapitalized?
Look, you are going to ruin my career and reputation. I need a brief I can use as a certificate that exonerates me. Because I also heard that any dividend and today's SPS LP increased for free, are also capital distributions.
Have you ever heard of a Separate Account? No? Does 1989 FHLBanks ring a bell? When did you arrive to the FDIC? 1990? Didn't the FDIC manage the failed RTC (Public-Private Partnerships), where the FHLBs invested in, through a RefCorp bond purchased by the UST?
Oh my! We're all going down!
Please, submit a written report.