That is correct, and of the $300 Billion the gov. got, it owes back $35 Billion after the 10% is paid.

I was replying to the $200+ stock price being promoted.

You don't understand how much dilution the common will incur. 1) Treasury will exercise the warrants, add 5 Billion shares to get Treasury to 79.9%. 2) SCOTUS will rule in our favor and nullify the 4th amendment and so 3rd amendment is still in place. According to court experts, if the 3rd amendment was the controlling document the senior preferred would be deemed paid and we would have overpaid by approximately $35 Billion. This means that the companies would have started to pay dividends to the preferred, and so the preferred are now at par + 5 years of dividends. The companies are trying to conserve cash so they will need to make a deal with the JPS to convert to common at say $3. Add 13 Billion shares. Companies now have $45 Billion retained earnings, $35 Billion from the Treasury, $35 Billion from JPS conversion, $115 Billion total. Raise $70 Billion and they are out of Conservatorship. How do you raise $70 Billion? Companies now have 19 Billion shares outstanding, Company worth $300 Billion, 23% = $70 Billion, 23% of 19 Billion shares = 4.4 Billion shares. Total outstanding shares = 23.4 Billion $300 Billion Company valuation = $12.82 per share.

So why were the JPS up twice as much as common today?

The first conversion will be the warrants, add 5 billion shares.

SCOYUS just needs to void the 3rd amendment.

Even if SCOTUS voids the third amendment, and so the sweep, the commitment fee is still in place.

The best thing about earnings is the report which includes their plans over the next 12 months.

Remember, they will not pay off the JPS, they will convert it. Conversion must happen before they go to market. To market by 9/30/21.

WRONG, it is actually the lesser of either A. a 10% dividend on $400B+ or B. any increase in net worth from the previous quarter. As dividends are subtracted from NET WORTH, the Treasury dividend is after shareholder dividend.

Simultaneous raise and release.

FMCC has 3.2 billion shares outstanding. FNMA has 5.8 billion shares outstanding. The Gov. converts for 79.9% approximately 35 Billions shares issued. This totals 44 billion shares. If the juniors are converted at $1.50 that adds an additional 22 billion shares. Total 66 billion shares. Do a ten for one reverse split = 6.6 billion shares. Issue 9.3 billion shares at $15 each to raise $140,000,000,000, we have 16 billion shares for a $300,000,000,000 company = $18.82 value per share, and they start paying a dividend. Current shareholders have been diluted 94% and pre split shares are worth $1.88.

They need a Gov backstop until they get to $280 Billion in tier 1 capital. As long as the Gov is their backstop they need to pay.

They will need to continue paying for the Gov. back stop until they have raised sufficient capital

With this quarter earnings they will have $40B in retained earnings plus $33 B in converted preferred = $73 B

The consent agreement will have milestones to be reached in return for reduction of gov. oversight. As an example; reach 100B in equity and you get an independent board of directors. That gives the F’s incentive to convert to reach that 100B. End of year they will have 40B in capital, convert the Preferred adds $33B, only $27B to go, 2 years of earnings. Conversion will be within 18 months.

Original conservatorship gave FHFA authority to change the equity structure as it sees fit. No vote necessary

$33 billion worth at par

Congress goes on vacation, like they need it, Dec. 18, that Friday night, after 5pm, the consent order will be released.

You forgot about the $33 billion preferred

The JPS will be converted as it represents some $33 billion in tier 1 capital. The problem is that at the current price, use $3 per share, that represents 11.1 billion new shares. that would mean a total of 17 billion shares outstanding. Earnings would be around $1 per share. At 10 times earnings, $10-$12 per share.

Mnuchin is afraid SCOTUS will declare the original Conservatorship an illegal taking and US will have to pay back to Fannie everything the US took, Mnuchin can’t have that happen and is negotiating with the various invested parties to settle before the 9th.

Conversion saves $33 billion and increases tier 1 capital by same amount. Jps has to be converted

Which is why the preferred will be converted to common.

How is it fraud when GE was very clear in his intentions, and filed all appropriate SEC reports?

Not true, these are new shares being sold for cash. This increases the net asset value by $100K and increases share count bu 33 million.

I think he is planning to purchase all the shares himself, he would then own about 70% of the outstanding stock. He is currently at about 50%.

Do we know they paid? If they did pay they should notice it since it is a material event. If they did not pay, it is not a material event (business as usual) and do not have to notice .

Look at cash flow. 2009 was the only negative year, $11 billion, then 2010 $17 billion positive cash. They did not need the bailout. They do need more capital.

So a company making money, and positive cash flow, with no debt, is going bankrupt?

Perhaps they will go back to only taking the 10% on the $187 Billion originally given. That would amount to a $4.7 billion payment.

F & F are still reporting companies, they have to report significant events which stopping the NWS would be

It was bookkeeping fraud that keep their net profit negative

There is no way Trump is going to continue an Obama policy of stealing money from a public corporation. If he allows the sweep to continue he will be complicit with Obama, not going to happen.

As Trump, would you go for the status quo or take an option by letting F & F build capital with no ability to dividend until the capital base is a minimum of $60B, so at least they are building capital until congress acts.

Tax reform will give Fannie May a $10 billion hit to their balance sheet. The US gov. by their guarantee would have to fund that $10 billion hit because they have drained FNMA equity down to $600 million. Mnuchins and Mel Watt, can stop, or delay, the total sweep and just keep the 10% dividend with just their signature. No other vote is necessary. They just say that by stopping the sweep they are protecting against another gov. bailout.

FNMA has 1,158,078,000 shares outstanding. If the gov. exercises its 80% they would own 4,600,000,000 shares. FNMA is making at least $10 billion annually, this assumes the government stops the sweep, which equals $1.74 per share after government exercises. Give it a low 10 times per share and you get $17.40 per share. The Gov. now has an asset worth $80 billion, which they can use this year to lower the deficit. If they sell 25% annually into the market they would make will over $80 billion, I expect the price to go to $45 over these 4 years. Gov. makes $20 billion annually, twice what they would get from the sweep, and no legislature can look beyond 4 years, this is a win, win. This also assumes laws to force FNMA to have a minimum 8% capital.

Dead cats do not bounce on 24 million shares

forgone royalities

MGT has a boatload of RSU's and Options. Their motives are aligned with shareholders without purchasing more shares.