Fannie Mae-No Politics (FNMA)

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There will be no IPO without resolving 1) Senior Preferred and 2) Warrants. Exercising warrants will lead to another round of litigation that will create uncertainty in an IPO offering. New money wont touch with SP 10% dividend. A class of preferred stock could be used but NO DIVIDENDS in conservatorship. Out of conservatorship, the board of directors will determine the best course of action for raising capital, and it will not be an IPO of common shares. Even at 79.9% dilution this is a buy.

I personally think that F&F will be released as a "severely undercapitalized" enterprise, subject to an approved capital restoration plan. This restoration plan will include a substantial Credit Risk Transfer (CRT) program that will reduce as capital is built. An ongoing g-fee will be paid to the government, and the SPS will balance will be considered repaid (with an assist from the courts). Once capital is built the board will continue to raise capital in order to repurchase the warrants at a discount (giving $ to gov and possibly avoiding litigation).