Replies to post #764815 on Fannie Mae-No Politics (FNMA)

[Rodney5]

FOFreddie, not sure how you came up with 80/20. Bryndon wants the warrants extinguished. Page 3

Quote:
Bryndon Fisher
I will say, however, that unlike Collins our two cases are (and have always been) very straight forward and very easy to understand – a return of excess funds to the companies through a quarterly unwinding of the NWS. I have articulated that (and the recapitalization and return of the firms) here:

https://drive.google.com/file/d/1LNWzb9QhI1GiOk8W_2MYgERyE4yNRU04/view?usp=drive_link

All the calculations have been done and supported, so no one will be caught off guard if a judge (like Justice Thomas did during oral arguments in Collins) asks “How will we unscramble this egg?” It’s simply math your Honor, science will have nothing to do with it.

[kthomp19]

Bryndon Fisher is bringing a Derivative Suit so the UST would recover any damages on a 80/20 basis.

Fisher's suit is basically dead at this point. The corpse just hasn't stopped twitching yet. I wouldn't count on anything of value coming out of that case.

The GSES would optimally benefit because they would help build capital and do it in a way that does not cram down existing investors.

The purpose of a derivative suit is only to help the companies. A senior-to-common cramdown helps the companies, because it increases their regulatory capital by $193B.

In the end the UST would be only out the 20% that would accrue to existing common

Even that 20% would be subject to dilution by a capital raise and a junior-to-common conversion. I wouldn't fixate on 20% too much.