Fannie Mae-No Politics (FNMA)

[MannSinger]

GSE can raise $100B by same dilution % as if warrant is exercised

Government may not exercise 79.9% warrant but Gov can force GSE to raise $100B by same dilution. That will be easy with no lawsuits. That's why Mnuchin say, "When we reform GSE, make sure GSEs do not require bailout again."

He can put this $100B in the treasury bond generating $3B per year.
Use $3B to as fee for LOC and trust fund.

You will see mother of all wild ride in following scenario:

1. GSE will be recap, release and relisted with warrant being exercised - going $60
2. Dilution by 5 times same as warrant to raise $100B - Back to $20.