There is an indication from Sweeney's motion to dismiss that she is absolutely willing to entertain damages to FnF considering her commentary on the NWS being contrary to FHFA-Conservator DeMarco's responsibilities at the time serving as acting conservator.
It is at minimum documented in the 5th Circuit and USCFC that the NWS netted in excess of $100 billion in profits to the Treasury. Thus far the NWS per the 5th Circuit and the USCFC are leaning to the NWS not being legal.
From Sweeney's court (USCFC), monetary damages can be awarded to FnF the companies (derivative only) as the takings and illegal-exaction claims survived the government's motion to dismiss. While not being a final victory, it appears the court, based on oral arguments and the text of Judge Sweeney's motion to dismiss, does not look favorably on the NWS.
Now Collins is being appealled to SCOTUS by the government/Treasury as the gov disagree's with the 5th Circuit's 9 to 7 opinion about essentially the NWS. The FHFA-Conservator agreed to the NWS contrary to "preserving and conserving" assets for FnF. Obviously, due to FHFA's would-be role as conservator, this question before SCOTUS has a direct impact on Fairholme Funds, et al., in Sweeney's court.
If SCOTUS does not take the case, Sweeney is in play. If SCOTUS takes the case and rules in favor of the Plaintiffs (FnF), Sweeney is in play. If SCOTUS rules against the Plaintiffs, then I believe there will still be an equitable settlement to get recaptilization underway, but FnF won't have much influence in the outcome.
The main point being there is possibly over $100 billion at stake in Sweeney's court which is an extremely large bargaining chip in any settlement talks. There is also the possibility of Summary Judgement being handed down, long before a trial.
Settlement Equation: $124 Billion + Legal Settlements = PSPA & NWS Cancelled + Warrants Cancelled (Repurchased)
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