Fannie Mae-No Politics (FNMA)

[contrarian bull]

I was suggesting to pay the dividend in stock v cash
I recall that was always an option for the conservator

The current agreements specify dividends must be paid in cash, but sure - the conservator could do a 4th amendment saying stock was OK. But where would they get the stock? While the conservatorship is going on the companies are just worth a few billion.

The ironic thing is - the gov't would make out like a bandit by ending the conservatorship. They would get that $185B back, plus the companies stock equity would jump to say $50B, which they could then take 80% of through the warrants.

I mean - wouldn't any investor rather have a lump sum of $200B today vs getting $140B over the next 10 years? It's the time value of money thing.