Fannie Mae-No Politics (FNMA)

[bcde]

"So my guess is
- warrant is either cancel or sell back to GSE
- SPS is fully repaid, so what converts to common?
- no IPO, recap by retained earning, new JPS, and hedging.
- release before election. Any gap to meet the capital requirement will be covered by new credit line from UST with fee.
- MC may lower capital requirement in light of the last stress test which shows only about $45B lost under worst scenario."

Makes a very good plan for release with no risks.