Fannie Mae-No Politics (FNMA)

[FOFreddie]

The logic - although with very low probability - is that the SPS is now not convertible and that any amendment to make them convertible would be an "overt act" and Unconstitutional taking and perhaps another breech of the implied covenant of good faith. ROLG and I believe Ackmans lawyers have basically said that there is a basis for a law suit if there is a cramdown via a conversion of the SPS.
This is prospective and actionable. The warrants can not be challenged at this point based on Statute of Limitations or otherwise - the last and best hope of any challenge expired with the final dismissal of Bryndon Fisher's derivative suit.