Fannie Mae-No Politics (FNMA)

[HappyAlways]

Fannie to buy back the JPS at PAR is probably the best and easiest means. Total is $36B at PAR, if I remember correctly. Fannie can then issue new $150B Ps at 2% interest.

Or, be more innovative, buy back also all Commons at 10 times the current price (about $28B). UST can then do re-IPO at will and avoid the lawsuits. Fannie is making $12B a year. And, the NWS overpayments is already some $100B ? It will be another major windfall for USG.

JPS are like loans to Fannie. If Fannie is making profit but refuses to pay interest, they will need some exceptional good excuses or there will be serious concerns. Paying NWS to UST without paying dividends to other shareholders is already causing some lawsuits.