Fannie Mae-No Politics (FNMA)

[imtheshadow]

I find it interesting that many people seem to automatically equate comments about reform + tax payer protection with good news for current shareholders. FnF could be totally reformed, and tax payers protected, while current shareholders get (further) screwed. How? Well, one obvious scenario is that we never get any of the excess dividends back that were taken during the NWS, we get diluted 80% with the exercise of the warrants, and then diluted significantly AGAIN when NEW shareholders are brought in for the recap. Unless we get a favorable court ruling and/or a smoking gun, - no, make that a bazooka - is found in the discovery docs, we are not going to come out well on this. Also, if FnF are reformed with appropriate capital requirements, NEW shareholders will jump at the chance to provide the capital at bargain basement prices (at our expense, of course). Go TEAM Collins/Pagliara/Steele/Discovery!