Fannie Mae-No Politics (FNMA)

[ease2002]

This “article” is BEYOND self-serving. Simple point: Use difference between 186B and ~280B repaid to recapitalize the companies at ~100B. This is a MAJOR step towards PROTECTING taxpayers. Also, common will not drop to 1.80 per share. Forward looking PEs, etc., will provide a multiple based on potential future earnings from arguably the largest industry on the planet. So once FnF are on solid footing institutionals will take large positions in FnF for retirement, pension, etc. My time horizon is long term as I got in around the 2 buck mark in 2017.

Makes better sense to settle ALL lawsuits and recapitalize FnF with ~100 Billion net gains via sr pref dividends and nullify all sr preferreds and let the jr preferreds run their natural free market course, which provides a windfall to Paulson, Berkowitz, et al, plus some type of conversion between 50 and 100%.

The author of that article has a plan and is using their platform to generate more volume in Jr preferreds so they can start to take a position in common. I bet lawsuits will be dismissed contingent upon the Sr preferred’s warrants being nullified. That is a nice and neet way of ending all lawsuits that would be the only true risk to a Mnuchin/Treasury plan. Ackman wouldn’t accept anything less . Looks like this author got nervous from Groshan’s Benzinga article and is trying to spin it