Fannie Mae-No Politics (FNMA)

[kthomp19]

Is less than $80 thousand fair value for $400 billion?

Irrelevant. Treasury also only internally values the warrants at $60-80B according to Craig Phillips. I have no idea where $400B comes from.

Was that the act of someone preserving and conserving his wards?

Irrelevant because HERA's mandate is to conserve and preserve the assets of its wards. The warrants are for shares of common stock, which are equity, not assets. HERA has nothing to say about conserving and preserving equity.

It's either the courts or a settlement. Either way the corporations (not shareholders) are made whole. Settlement hides the government swindle. My money is on settlement.

I agree.

If there's capital to be raised, it will be minor, very little dilution

Calabria and Mnuchin said, on page 6 of their recent letter, that "the Enterprises will likely need to raise third-party capital". This "if" of yours tilts much closer to certainty than its opposite.

What leads you to your conclusion of "minor, very little dilution"? Especially in light of the warrants, which by themselves involve rather heavy dilution?

and raised by boards of directors elected by common shareholders.

HERA proves this false. While FnF's core capital is below Calabria's minimum capital standard, they will be classified "significantly undercapitalized". That means, according to 12 USC 4616, Calabria will be able to

(3) Acquisition of new capital

Require the regulated entity to acquire new capital in a form and amount determined by the Director.

and can also hand-pick the boards:

(C) Employ qualified executive officers

Require the regulated entity to employ qualified executive officers (who, if the Director so specifies, shall be subject to approval by the Director).

Therefore while FnF remain below the minimum Calabria will set, your statement "raised by boards of directors elected by common shareholders" is false. And when FnF are above that standard, they probably will not have to raise much, if any, capital at all.