Fannie Mae-No Politics (FNMA)

[FOFreddie]

Yes you are right regarding regarding capital requirements and lawsuits.

My thoughts are assuming that Nomura is right, capital is $125 bn, warrants are valid and UST will sell stock over time and investors settle via shareholder votes or exchange offers rather than wait for lawsuits. Index funds are not going to buy if there is material litigation risks and public offerings may not happen either. Early purchases by major institutions are probably just a very minor first step because the Portfolio managers have little to gain and a lot to loose if they do not follow the pack.

My point is that if this all can be settled there probably is a lot of upside either way and maybe shareholders will want to settle early rather than late.