Fannie Mae (FNMA)

[Commons_Cancelled]

You do realize the money from exercising the Warrants goes to the Treasury and not to Fannie Mae, right!?

If so, your statement below doesn't make any sense:

I predict some exercised warrants will be used to build the capital.

And your other statement:

The only losers in a high stock price Public Offering are the ones buying them.

Well, let's just say this is exactly why the New Money that will be Recapitalizing the GSEs isn't going to pay a high price. They aren't going to be suckers or "losers" if they're putting up $70-100B of their own capital. They're going to want a big return on their investment, so I would expect the capital raise to occur at a 25-50% discount to whatever $FNMA was trading at right before the capital raise starts