Replies to post #790891 on Fannie Mae-No Politics (FNMA)

[kthomp19]

what was the case - what was the plaintiff arguing - what did the jury decide

Fannie and Freddie, the companies, have contracts with their shareholders. Inherent in these contracts is the implied covenant of good faith and fair dealing, which boiled down says that each side can expect the other to deal with them honestly and fairly.

The plaintiffs alleged that Fannie and Freddie, as directed by FHFA as their conservator, violated this implied covenant when they signed the NWS in August 2012.

The jury found in favor of the plaintiffs and ordered the companies to pay damages, a total of around $800M.

I think the case is far from your limited description

I haven't included every detail here, but my assertion that the entire trial and verdict had nothing to do with Treasury is still correct. The jury did not determine that Treasury did anything wrong at all. Treasury was not a defendant in the case.

Anyone who is saying that Treasury will be forced to do anything at all as a result of the jury verdict, including things like writing down the LP in full or in part, is just plain wrong.