Fannie Mae-No Politics (FNMA)

[FOFreddie]

Hi Joseph,

I understand and agree that JPS have more security but I dont understand why you think the UST would not want to maximize the value of its 80% warrant position?

How does it bring capital in unless the GSE's sell common equity?

Why wouldn't POTUS want a high valuation for its equity position via the warrants which could make headlines about how so much money was made when Obama just wanted to shut everthing down?

How do you get $ 0.30 - there is $14.4 bn of equity now and FNMA makes approximately $ 0.14 to $ 0.20 per month assuming $10 to $ 15 bn in earnings?

Maybe one can argue for a $ 5 valuation but just as easy a $ 8 to $14 valuation?

Dont understand how one can be so confident that the UST would not screw JPS but is more likely to screw common. Why not just treat every one fairly and make more money for the US Taxpayer in a fair and constructive way?