Fannie Mae-No Politics (FNMA)

[JOoa0ky]

But the bottom line is that they want to exit conservatorship. To exit conservatorship they need to do a cap raise (to anyone who thinks that they can do it with retained earnings over the next ten years - let this latest crisis be a lesson to them).

Even with Moelis, it still calls for the plan to be fully executed over 4 years. We are following pretty close to it...

Just to drive the point home, in Moelis the chart on page 24.
- Agree terms to partially equitize JPS 3

"Partially" is the emphasis... I'm just warning you guys about the low div ones.


Also even with heavy common dilution you can look towards history of AIG and CITI post warrant execution. There came years of hefty stock buybacks not immediately afterwards but years afterwards once they returned to profitability.

You know what the difference is here with FRANNIE? We are ALREADY profitable. Do not have to wait years to turn the corner to start share repurchase.