Fannie Mae (FNMA)

[bcde]

"FnF should start to buy back JPS from the market now. They should also use their capital to buy commons until the target price for SPO is reached.
There is also possibility to buy commons as an investment, if there is a problem about buying own shares, Fannie could buy Freddie shares and vice versa.
"

It is a very good idea for fnf to start buying both JPS and CS.

Since JPS can be bought from the market for 50 Cents on a dollar, FnF will save billions in redemption and dividend costs. Eventually JPS will price will go up benefiting JPS holders also.

Since CS PPS are highly undervalued, and if FnF start buying back CS at undervalued price, then the PPS will be priced appropriately, benefiting both FnF and CS holders. With higher PPS, FnF can go for SPO at good premium price and also give JPS holder an option to convert at SPO price.

Biggest obstacles to recapitalizing FnF is the Gov-UST control of FnF conservatorship through rubber stamp agency FHFA. In the best interest of all stakeholders UST and FHFA should end conservatorship immediately.