Fannie Mae-No Politics (FNMA)

[kthomp19]

And of course the fact that the SPSPA was not necessary to begin with, & is it illegal for the government to engage into a contract which is supposed to help the companies, but is actually a burden because it was enacting stuff congress should have done

Not this again. Go file a lawsuit, or stop claiming this stuff. Doing neither, like only posting about it on a message board (where it can't do any good) is worse than useless.

The terms of the original SPSPAs, including the 10% dividend rate and the warrants, are going to stand until and unless someone challenges them. Period.

now to continue with the SPSP contract after all money is returned is asking for trouble, the main point of the contract is fulfilled

The contract involves much more than just the seniors. It's the seniors that have been paid back at 10%, by the way. Not Treasury as a whole.

Cancelling the entire contract would be a disaster for FnF by the way, because it would nuke the funding commitment that is the basis for Treasury allowing release.

the maximum allowed numbers of share under the agreement is 4.6B(79.9%)

Wrong. The SPSPAs don't mention a junior-to-common conversion or an equity raise at all, but both of those have been given as possibilities by Calabria, and both cause the share count to rise.

I do not understand what you mean with “the possibility of Treasury keeping the seniors and sending out a ton of cash”

One way to unwind the NWS, and by my reading the only possible one by the terms of the SPSPAs, is to act as if FnF had paid the 10% dividend every quarter starting in 2012 but just kept anything above that. In that world, FnF would have $131B more in cash than they do now, and the seniors would be fully intact. The way to make our reality match that hypothetical world is for Treasury to simply write FnF a check for $131B.

Note: that does not mean an instant recap because core capital is -$181B right now; adding the $131B wouldn't even bring it to positive territory. A recap in this scenario requires the seniors either being cancelled (which I believe is illegal for Treasury to do with no return consideration), converted to non-cumulative prefs, or converted to commons.

Good one, for the same reason you are here? why are you here ?

I'm not the one claiming that any part of the SPSPAs is illegal other than the NWS. I'm not the one complaining about it. I also don't have anything to file a lawsuit over that hasn't already been filed.