Fannie Mae-No Politics (FNMA)

[FreeFNMA]

I really don't know to be honest, There are diminishing returns the further past 100% dilution you go. If Treasury decides to dilute only 3b shares vs 4b it is only $5b net difference. (assuming $100 PPS without warrants)
diluting 2b vs 3b is less than $10b in net returns and at some point this does more damage to the GSE's than it is worth. (best bang for their buck is 100% dilution or 1.2b)

I am pretty sure Mnuchin thinks the takeover of FNMA is bogus. He was my boss for 5 years (a little higher up on the totem poll) but I have talked with his inner circle about this and "bogus" was the term they used to describe what happened.

Keep in mind Brooks is running FNMA currently and he is Mnuchins close business ally. It would be a shock if he willy-nilly gave away the market share to TBTF banks that caused the securitization race to begin with(which led to the GSE takeover).