Fannie Mae-No Politics (FNMA)

[kthomp19]

the idea --- notion - theory - that there will be some "return of LP" (my quotes) now that the Jury decided in our favor is very interesting

Only "interesting" in that it is wildly incorrect and yet somehow widely believed.

The jury verdict had NOTHING to do with Treasury, the senior preferred shares, or the liquidation preference of those shares. Nothing that Treasury did was found to have been a violation of any law or covenant. Treasury wasn't even a defendant in the case!

And no, the argument that "Treasury signed the NWS therefore they were a party to the wrongdoing" doesn't work. Again, Treasury was not a defendant. They got offered a plum deal and took it. The implied covenant was only between the companies and the shareholders; Treasury has nothing to do with it.

The verdict ONLY resulted in the companies having to pay money to shareholders. That is it and that is all. There is no implication on Treasury because, again, Treasury was not a party to the case.