Fannie Mae-No Politics (FNMA)

[bcde]

"Currently FHFA Conservator Calabria is making it almost impossible to raise new capital with his endless loose talk interviews."

Will this ultimately work in favor of CS shareholders?

If investors decide not to invest any fresh capital in FnF, for the reasons of uncertainty about FnF business model and lawless FHFA conservatorship risks, then UST warrants are not worth any more than the current price of CS. At best UST can get about $10B to $20B for warrants.

If FnF buy back UST warrants and opt for capitalization through retained capital and other ways, then there is no CS dilution. JPS will get par value when capitalisation is completed. Until then both JPS and CS mat not get any dividends.