Fannie Mae-No Politics (FNMA)

[HoldenWalker99]

Maybe. No one knows what Fairholme's preferred outcome is, but I'm pretty sure that's it's not to tie up $1+ billion in shares so they can earn dividends.

As a non-litigating preferred shareholder myself, I have no interest in back or future dividends. I want as close to par value as quickly as possible and anything that impacts timing will be discounted based on my personal cost of capital.

Also, you keep forgetting what I tell you not to forget: GSE capital restoration plans will recommend converting the junior preferred to common equity to keep the same $33B core capital and add $1B annually to retained earnings that would otherwise be paid in dividends.

It does not make sense for companies trying to rebuild capital to give away $1 billion in dividends per year... just to spare their common shareholders from more dilution.

I'm coming from the perspective of holistic core capital and you're coming from the perspective of the common shareholder. What do you think FHFA and GSEs care about more?