Replies to post #509987 on Fannie Mae-No Politics (FNMA)

[kthomp19]

PLUS, the companies NEVER reported the news of settlements

Wrong. On page 167 of Fannie Mae's 2013 Q3 10-Q (emphasis added):

The following additional lawsuits were resolved in the third quarter of 2014:

• Goldman Sachs. On August 22, 2014, we and FHFA entered into a settlement agreement with Goldman Sachs & Co. and certain related entities resolving our claims in the Goldman Sachs case. Under the terms of the agreement, Goldman Sachs paid us approximately $1.0 billion in connection with releases and its purchase of specified securities that were the subject of our claims in the suit. On August 27, 2014, the district court entered a voluntary order dismissing the case.

• HSBC. On September 12, 2014, we, along with FHFA and Freddie Mac, entered into a settlement agreement with HSBC North America Holdings Inc. and certain related entities resolving the HSBC North America Holdings Inc. case for a payment of $550 million. HSBC paid us $176 million of this amount in September 2014. On September 17, 2014, the district court entered a voluntary order dismissing the case.

This debunks both of your theories. FnF did directly receive the money from the PLS settlements (that money was later swept to Treasury via the NWS), and they did report every single one of them. Go check the other 10-Q and 10-K forms from 2012, 2013, and 2014 to find out for yourself.

I can remember quarters where they never even reported the net worth swipe payment being sent over

Wrong again. On page 12 of that same document:

The Director of FHFA directs us to make dividend payments on the senior preferred stock on a quarterly basis. In December 2014, we expect to pay Treasury additional senior preferred stock dividends of $4.0 billion for the fourth quarter of 2014.

The earnings press release from that quarter also includes language about the settlement money being included in income (though not the amount; that was in the 10-Q itself).

Higher net revenues were driven primarily by an increase in income from settlement agreements related to Fannie Mae’s investments in private-label mortgage-related securities and an increase in net interest income.

And is anybody up-to-speed on what the grand total settlement number was?

$24.9B, found here. Every penny of that first went to FnF before being swept to Treasury.

I have heard arguments in the past about how Treasury should send an "extra" $25B back to FnF for this settlement money, but it counts towards the overpayment. If it weren't for these settlements, Treasury's IRR would still be below 10% and the Collins plaintiffs' proposed remedy (extinguish the seniors, FnF get a $16.1B credit with Treasury) wouldn't even be possible.