Fannie Mae-No Politics (FNMA)

[LuLeVan]

FHFA and treasury can generate any IPO price they want by reverse split. If only the warrants are exercised, it could be 3 to 1. If the SPS are converted, it is more likely to be 100 to 1 or even 1000 to 1. No one can predict which option will be chosen. The SPS conversion has greater probability. However, after the Lamberth jury verdict, the associated embarrassment for the government also increases, as Tim Howard pointed out today.