Why aren’t other classes of Fannie Mae preferred stock or mortgage-backed or debt securities included in the Settlement?
The Distribution Plan approved by the Court includes only common stock or Class N preferred stock. Using the best information available and economic analysis, the majority of investors’ losses occurred in these securities. All bondholders were excluded because Fannie Mae’s bonds were numerous and the vast majority of the trading in these bonds was not reported, making it impossible to reasonably estimate the effect of the alleged fraud on the specific bonds.
