Fannie Mae-No Politics (FNMA)

[Guido2]

According to Attorney Thompson, government can come to him and settle for $30 billion now, in credits, or go to trial and pay Fannie and Freddie $130 billion.

If government settles, they'll have $24 billion in current equity plus $22 billion in loan loss reserve plus $30 billion returned by the government less $34 billion in preferred shares. This leaves $42 billion for 2 billion common shareholders. Or book value of $21 a share. Patswil on this board has figured out that based on their earnings history, they are worth $176 a share. We have been prognosticating when this will happen and have been wrong every time.

If Judge Sweeney awards $124 billion to the corporations, the The shares immediately shoot above $100 and will just keep moving upwards.

Happy investing and welcome to the board.