Fannie Mae-No Politics (FNMA)

[contrarian bull]

Wouldn't it be nice if treasury just did the right thing?

If they reversed the NWS and credited f&f $200B for previous payments the following would happen:

F&F stock would jump up to $100/share

Treasury would get back at least $160B of that $200B by exercising their warrants. More likely the full $200B if f&f are released.

Treasury would get another $40B in taxes on f&f shareholder capital gains.

F&F would be fully capitalized with reserves of $200B combined

Law suits would most likely just go away.

A few voters (shareholders) would be happy, most would be mad but since when does this admin worry about making voters mad?

Dividends on junior preferred and common stock resumed.

Corker would suffer a coronary and miss a few critical votes



I see all the above as good things.

The judge might have found answer to his own question that $187B+10% is paid for with NWS. Hence he does not need info from plaintiff. He may just rule apply NWS towards $187B+10% and let any extra money paid back to GSEs. This is available at many websites.