Fannie Mae-No Politics (FNMA)

[Stockman1010101]

Disagree. The government could exercise the warrants, wait for the stock to rise to a good level say $70 and start selling the shares and make billions of dollars profit for the treasury. Why would they walk away from this? Fannie and Freddie are not on the brink of bankruptcy and so there is less then 1% risk that the government would have to bail them out. Your logic does not hold water. Please explain more specifically why it would be disadvantageous for the government to hold 80% of the GSE shares.