Assuming that case in the link was never heard en banc, and that it remained a two-person panel majority, their opinion was simply superseded by Collins.
Future lower court decisions are duty-bound to follow Collins, not a conflicting decision in any federal circuit at any level.
The conservator has limited powers. You are repeating the take by Bill Ackman, who implied that the SCOTUS said FHFA has absolute discretion (Source). O Ackman’s clerk, Bradford: With your quote:
Justice Alito put the prerequisite "Rehabilitate FnF", when he spotted that "authorized by this section" refers to the fhfa-c's Rehab power: " Put FnF in a sound and solvent condition". Soundness and solvency are related to Capital levels and reduction of the obligations SPS (with respect to capital stock). Exactly the 2 exceptions to the Restriction on Capital Distributions. 1-CFR 1237.12 . Recapitalization in a Separate Account. 2-U.S.Code §4614(e): reduce the SPS.
Capital means Retained Earnings account (Core Capital) and since day one. It doesn't have a choice.