what about the fact they have repaid everything and plenty more?
I truly don't see why this matters. Dividend payments on preferred stock don't ever reduce the liquidation preference. Not for FnF, and not for any other company.
Saying that Treasury should write off the seniors because they more than recouped their original investment is equivalent to saying that any other stockholder in a company should write off their shares as soon as they receive more in dividends than their cost basis. Things just don't work that way.
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