ano - I generally agree with you 100%. The agreement between FHFA and Treasury has stated the price Treasury would have to pay to exercise the warrants. This should be the same price Fannie and Freddie should pay to buy them back. TBTF banks were allowed to buy back their warrants. Why not FnF? Both have the funds to buy back the warrants. If they don't, I'll lend it to them at 0% interest.
Guido2 – yes we share the same thinking process and have aligned knowledge about the matters involved, I appreciate it I agree with you if the warrant is exercised they will have a number of suits coming their way, because you cannot thread one company different than the other. The inner circle is working on details now so obviously they will undo everything as that is the easiest most honorable and convincing to new holders, the administration can finger point to previous administrations and claim victory as they did solve it while the others didn’t, we are sure in the end game and the 5th circuit is up next.
What are your thought about the recapitalization? My thoughts are they cannot come up much higher than the current 2%, Ginnie will have thru retained earnings maybe 3B this year so they can maybe get it to 2.05%, would be very strange if FnF would need 3%, unless the government deposits 30B per % into Ginnie of course
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