Fannie Mae-No Politics (FNMA)

[FOFreddie]

Private/Public Partnerships like GSEs will be key to $2 Trillion National Infrastructure Initiative.

UST will want to respect private investor rights and rule of law in GSE recapitalization to raise private capital for $2 Trillion infrastructure projects.

Warrants and value of common equity probably best means to up with down payment on infrastructure funding. Conversion of sr preferred and sale of equity could raise $100bn and still pay off jr preferred leaving significant value for common shareholders. Perhaps $100bn of the $2 Trillion.

Rule of law and respect of private capital must prevail for infrastructure funding in the US going forward.

Opportunity Funds could also bring capital to inner city and rural area along with newly recapitalized GSE funding resources.

There is enough for UST, Jr Preferred and Common Shareholders in a well managed recapitalization. Win - Win - Win and Win for POTUS.