One thing to keep in mind is that FnF overpaid the amount of money they drew from Treasury by $110B. That is far, far less than the current liquidation preference of $293B. Why would Treasury deem the seniors "repaid" when they haven't been to the tune of $183B (and counting)?
I already know the counterargument here, that if the NWS had never happened then FnF would have paid off the seniors. But that is incorrect for two reasons:
1) FnF never had the ability to repay the seniors (outside of certain circumstances that, as Lamberth correctly pointed out, have never occurred)
2) Who's to say that even if FnF could have repaid the seniors at any time, they would have used every available penny of net worth to do so? As opposed to, say, actually holding it on the balance sheet in case of another housing downturn?
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