Fannie Mae-No Politics (FNMA)

[kthomp19]

FnF have paid back all the bailout money plus 10%. SPS should be invalidated and that is what MC should talk to UST.

In my scenario (the plaintiffs' second requested remedy), Treasury sends $122B back to FnF. Treasury only gets its $187B back with no interest. Therefore they would not have been paid back the "plus 10%" and the seniors would continue to exist. If this happens, it would be because of a court order and Calabria wouldn't be able to do anything about it.

Did MC suggest converting SPS to common? NO.

Try again. He did suggest this. Start at 14:03 of the interview. He directly mentions a conversion in relation to Treasury's equity position.

Any secondary offers by UST doesn't help FnF to recap as money goes to UST not FnF. It is that simple.

I agree. But in my scenario FnF are already recapped (by Treasury), and Treasury is just trying to recover its money and then some.