Fannie Mae-No Politics (FNMA)

[Donotunderstand]

It will not

AT the moment - given when THIS replaces the 10% that was there

The amount that is > than the original provision is not large

AND
AND

I have posited that in a negotiated agreement

So that the GOV does not have to find money to close a deficit gap (say 20-40B)

the agreement COULD be

third amendment stopped that day
senior shares to expire (date within 12 months of news)
in the interim - the GOV - Treasury - FHFA - who knows will do an IPO of X # shares

This IPO will collect 50B dollars at say 1B shares at 50 or say more likely 2B shares at 25

ALL SUCH MONEY COLLECTED FROM THIS IPO TO BE THE PROPERTY OF F AND F AND TO BE PUT IN THEIR RESERVE AS LEVEL ONE TIER ONE CAPITAL

Thus - while we current owners are diluted in number of shares (we are half owners for example) ---- we then would own our half of a company that instead of having 1-2 Billion of reserve will have 51-52 Billion of NET cash reserve

I,e, if the IPO sells for 25 a share - we own 25 dollar stock
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This frees us - sets up a reserve to allow argument F and F will not need a bailout - and does NOT force the GOV/Treasury to find some way to fill a newly created deficit gap

This might come with a provision similar to what Berkowitz or Ackman first offered - e.g. profit for two years will go right back into the reserve ............. until it reaches x dollars

This might come with limits on profit to us equity --- to not exceed x dollars for three more years (all such excess to go to reserves)

and there may be some future anticipated semi private company but regulated utility model

but if the IPO price is 25 we own 25 dollar stock - that day