Fannie Mae-No Politics (FNMA)

[bcde]

"Buying common shares is mostly betting against these billionaires. Good luck
"

Under previous crony leaderships, it was never good to own JPS or CS, because wind down would have wiped out both JPS and CS.

Under current leadership, there is no wind down and FnF will return to their private corporate status. JPS will get near par value. The conversion of JPS to common is never going to happen.

FnF will be allowed to buy back the warrants because that is the only way to go forward without destabilizing the markets. Why would any administration wants to take any risks and for what gains?

These are probable steps going forward.

1. Continue capitalizing FnF with the retained capital.
2. Announce capital rules based on insurance industry standards
3. Announce SPS has been fully paid back and return excess payments. Allow FnF to buy back warrants.
4. Continue SPS credit line with new market based terms.
4. Release and Relist with consent decree
5. Continue to build capital with retained capital and if necessary from incremental SPO over many years.
6. End consent decree when all conditions are met.
7. Redeem JPS as per contract terms.