Fannie Mae Preferred S (FNMAS)

[rosen62]

Beta,

The request was merely to vacate the 3rd.

Yes. But that includes reversing the diminishing net worth of the companies "that prevents redemption of the Government Preferred Stock".

The proposed text is important. It is a window into seeing how the plaintiff's (or Ted Olson's) mind works. Plaintiff doesn't want to tell Treasury what or how to use any of the funds that were paid in excess. Instead, the proposed text allows parties to offer remedies "within 20 days". This gives Treasury (and FHFA) a chance to set a new course, like redeeming the Srs. Although Treasury could also come up with crazy remedies like keeping the funds in anticipation of future dividends reset back at 10%. Companies may then be able to retain earnings up to the consumption of "the amount kept". This may not reduce the Srs. immediately but will open a window to apply the newly retained earnings to that redemption.

All hypothetical, since the judge may throw away the proposed text. But it is interesting how Ted Olson continues a soft approach to a resolution.