Fannie Mae-No Politics (FNMA)

[contrarian bull]

Aren't commons trading now? Why would Calabria say that under most scenarios the commons will trade again?? These guys discuss stuff in private and when speaking in public things slip. Is he saying that part of the plan is to suspend trading in fannie and freddie common shares? That would imply a very major restructuring - essentially a liquidation with new common shares being issued. Hopefully current shareholders will get reasonable value in the new shares... ??? If they screw shareholders good luck with that IPO...

Mnuchin made a similar slip when he said Treasury would get paid for "the delay". What delay? WTF are they discussing in private...


Yeah - the letter increasing the amount that f&f can retain would only bring them to $50B or so after 2 years, so around then they need something to bring in more cash.

He did say 100 billion long term.
He did say under most scenarios the commons will trade again