Replies to post #326612 on Fannie Mae-No Politics (FNMA)

[stockanalyze]

no. pfds are non cumulative and they wont start paying anything until well capitalized. pfds in limbo for long, unfortunately. but again, no one knows as this is merely political hot potato.

think about it, most of the cases are to invalidate nws including ackman's.

[big-yank]

That is impossible to predict. It is highly unlikely that all swept proceeds will be returned to FnF. The law only says that a 100% sweep in perpetuity is illegal. The most likely outcome would be that things would be returned to the 10% sweep prior to Amendment3 being imposed. How that would be divvied could include junior preferreds, recapitalization, common dividends or none of the above.

Delaware is a Chancery Court state. Likely the funds would be escrowed until a settlement gets worked out, which could take a very long time. Remember how many months that same process consumed in Exide's case? That was also litigated in a Delaware court, like Hindes/Jacobs, just on the BK side.

JMHO.