Fannie Mae-No Politics (FNMA)

[Always wondering]

“False. The SPSPAs only say that Treasury's ownership via exercise of the warrants only cannot exceed 79.9%. There is nothing in the SPSPAs that says Treasury cannot end up with more than 79.9% if they convert the seniors to commons, as they did with AIG. There is also nothing in the SPSPAs that says both the warrant shares and existing commons cannot be diluted by other means, like a junior conversion or an SPO.”


If they do, they must add GSE debt to the deficit. I don’t see that happening.