Fannie Mae-No Politics (FNMA)

[Guido2]

A reverse or forward split doesn't have any effect on percentage of equity held by individual investors. But it does have psychological effect on shareholders and the market.

A reverse split implies the corporations are not doing well. This isn't true with Fannie and Freddie. They consistently earn over $20 billion after taxes annually. The only thing wrong with them is the swindle by our government. We finally have courts ready to rectify the theft. I don't see a need for a reverse split at this stage.

If the unthinkable happens, and the courts rule against the plaintiffs, then, maybe, a reverse split would be appropriate.