$FNMA #FANNIEGATE

A copy of the Memorandum Opinion about which Mr. Carney is giddily tweeting today is attached to this e-mail message.

As I understand it, Meridian wanted to force FHFA to sell it some low income housing tax credits under what Judge Cacheris characterizes as an agreement to agree.

I don't think the contracts under which Fannie and Freddie issued their preferred and common equity securities are similarly characterized as agreements to agree.  I think those contracts were fully finalized and clearly established the rights of the holders of those securities against the GSEs when they were signed.  To date, I don't believe FHFA, Fannie or Freddie have repudiated their agreements with preferred and common shareholders.  If FHFA has done so, that will bring clarity to a lot of the litigation challenging the Net Worth Sweep.15-01463-0034