Fannie Mae-No Politics (FNMA)

[Wise Man]

$402B Capital shortfall: NO release and NO Lamberth damages.
Capital shortfall over Minimum Leverage Capital requirement.
Yet, you peddle the idea of release as a kind of settlement of the damages.
The

"Just my opinion"

is often used to defend factually indefensible positions.

Capital distributions are restricted when FnF are undercapitalized.
Definition of Capital Distribution, 12 CFR 1229.13:
1- Any dividend and today's gifted SPS.
2- Stock buybacks and repurchase of Preferred Stocks.
3- Payment of Securities Litigation judgment in the Lamberth court.

The Lamberth damages have exposed what has been covered up by the corrupt litigants all along, that the dividends and today's SPS increased for free are also capital distributions restricted, which, in turn, uncovers the Separate Account plan that is meant to legalize those felonies:
-Breach of this Restriction on Capital Distributions.
-Breach of the FHFA-C's Rehab Power: soundness.
Using the exceptions to the restriction: first, SPS reduction. Then, recapitalization in a separate account.
So, they were assessments sent to UST, in the form of capital distribution and under the guise of dividends. Thanks to the FHFA-C's Incidental Power: "...best interests of FHFA".
And the fact that no dividend was ever possible with Accumulated Deficit Retained Earnings account. This account can be negative with the accumulated losses, but a dividend is a distribution of earnings. It's a theme of common sense to not distribute what you don't hold beforehand, and thus, this account needs to be replenished in the first place. Then, there are thresholds that limit the payout (latest: at least 25% of the Capital Buffers in the Table 8: Payout ratio)

All of the above, leads to a FnF declared Adequately Capitalized and also meet the 25% Capital Buffer threshold. It's when the dividend payment is resumed and the JPS's fair value fetches its par value.
There is more! Because, under the Separate Account plan, the laggard Fannie Mae had CET1> 2.5% of Adjusted Total Assets as of September 30, 2023, which enables the redemption of the JPS and then, FnF would still meet the TIER 1 Capital > 2.5% of ATA in the ERCF.
The FHFA might have thought that it doesn't want the JPS holders in the capital structure, thinking of a new Housing Finance System revamp where FnF are owned solely by stakeholders in Housing Finance matters.
But maybe the Congress disagrees and it chooses the "as is" scenario.
Anyway, this is an ongoing Conservatorship and the redemption of JPS is the correct action from the financial point of view (corporate decision) regardless.

BOTTOM LINE
The Lamberth damages will never be disbursed, even once Adequately Capitalized. Because it has uncovered the Separate Account plan and there have been no damages.
Everything has been lawful and the dividend was impeccably suspended.