Fannie Mae-No Politics (FNMA)

[imtheshadow]

Even if everyone, including the new administration, knows that the NWS is a taking (and possibly illegal per Delaware law), the anti-injunction provision has been upheld SO FAR, so there is no immediate legal pressure to end the sweep. Some argue the sweep needs to end now to make a recap possible without tremendous dilution of the commons in addition to the warrants. However, IF less dilution is desired/needed for recap in settlement talks, the gov't can always adjust the warrants (increase exercise price and/or reduce shares purchased) at THAT time and, meanwhile, keep the sweep going. As such, it seems that only the plaintiffs want the sweep to end, and everybody else (including courts so far) thinks it should continue (not necessarily because its legal, but because then can). I think it will continue and that we'll see a bit of a drop when it does. Very long and utterly disgusted with the whole thing, shadow