Fannie Mae (FNMA)

[HoldenWalker99]

Thank you for the opportunity to explain this to you.

Assuming 3.25% core capital requirement, you would need a capital raise of $100 billion (assuming two years of retained earnings), you would need 1 billion shares at $100.

Total 2.8 billion shares at $100 is $280 billion market cap, on the high end of the valuation range.

But fine...

And I'll cancel the warrants and junior preferred conversion.

New investors would have 35% of the total equity ($100 billion / $280 billion). Assuming $18 billion annual earnings ($20 billion less $2 billion JPS dividends) at 35%, that's $6 billion earnings allocated to the new investors for a 6% return.

Not going to work.