Fannie Mae-No Politics (FNMA)

[FOFreddie]

Thanks for letting me know kthomp19. Do you think the research makes sense?

Lets focus on the JPS valuation - pro forma net equity of $25 bn as of 4/1/20? Assuming charge offs of $10 bn for 2020 and $10 bn of profit for GSEs of 2020 of $10bn - pro-forma net equity of $30bn as of 12/31/20? Do you think these numbers are reasonable?

How do you get from $30 bn to $2.5 to $3 bn?

Do you think we could move from recap and release to receivership?

Do you think our prospects with the outstanding litigation could come up with an expected value for the JPS less than 75 cents on par or most likely par?

If you answer is - depends how bad it gets - if you take the 2008 scenario FMCC made more money than charges offs in every year during Conservatorshuip so what basis is there for any valuation remotely like this?

Why would anyone own common or JPS if these valuations were reasonably possible?