Fannie Mae (FNMA)

[FOFreddie]

Hi Kthomp19

Did you listen to this podcast? Pagliara proposed capitalizing the $30 bn NWS over payment as a committment fee and converting the $33 bn JPS as $25 bn additional equity under a Consent Decree capital structure in 60 to 90 days.

Pagliara definitely is proposing that UST use its 80% warrant and the fulcrum security. Definitely a move away from the Par plus missed dividends proposal that seemed out there in recent months? Do you agree that Pagliara's proposal in this podcast is different than the focus of the recent call with Thompson?

Pagliara say that this is a"short term - near term and long term solution" Said it was good for current shareholders.

"Create an opportunity for common and preferred investors to invest more,," - maybe a rights offering?

Lets find a "win win " situation for investors, Government and mortgage borrowers.

Bottom line proposal would be $ 30 bn Committment Capital infusion, $ 25 bn JPS converted capital and current net worth $25 bn. $80 bn in total capital - not clear what percentage ownership JPS would own but it definitely put common shareholders with alligned interest with UST.