Replies to post #687155 on Fannie Mae-No Politics (FNMA)

[Barron4664]

“This is exactly what I think is off the table now. The Collins ruling basically closed the door on all relief other than damages, meaning that the seniors are only going to go away if Treasury voluntarily does so.”

Where in the ruling did SCOTUS say only damages are left? They remanded the case back to 5th circuit for retroactive relief “if any” to cure the constitutional injury. They confirmed Lambirth’s original opinion that it was HERA that was the issue not the actions of FHFA when they dismissed statutory claims and closed off prospective relief. They are all but telling the plaintiffs to file suit for self dealing when they affirmed that Lockhart was in-fact an acting director removable at will when he signed the SPSA contract. Cant have a contract with only one party.

[The Man With No Name]

The seniors definitely aren't going away....that is until either they are paid in full via a public recapitalization or, if the Enterprise Value of FNMA is less than the liquidation preference of the seniors, then there will be some type of senior to common conversion (a portion of seniors to common).

Just like a Chapter 11 reorganization.

It all comes down to Enterprise Value.