Replies to post #534527 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Your assuming plaintiffs would even consider a settlement.

Yes I am. Look at the things that the plaintiffs are asking for:

1) An end to the NWS
2) Senior prefs cancelled
3) Money damages

A win in the Fifth Circuit takes care of the first two, and recap/release causes enough share price appreciation to make it not worth holding out for the third.

The AIG ruling that awarded nothing to shareholders was a big surprise. Something equally surprising could happen in any of the other cases. The plaintiffs have no reason to turn down a settlement that gives them everything that they asked for originally.

I reiterate, those opportunities have long passed regardless of the hopes of the defense.

The plaintiffs have always wanted to settle. It's the defendants that have been the holdouts. Now that Calabria and Mnuchin actually do want to recap and release FnF they will need to come to the negotiating table with the plaintiffs.