Fannie Mae-No Politics (FNMA)

[kthomp19]

treasury is never going to send $125B to fnf

Even if Treasury converts the seniors to common, sells them, and pledges to send $125B of the proceeds to FnF? In that scenario Treasury never has a cash outflow, and can potentially make even more than they would off the warrants.

the srs will be written down.

That's certainly cleaner than the senior cramdown, but it requires the plaintiffs for every lawsuit to agree to settle. The cramdown plus payment moots all the lawsuits entirely (other than WF), no need for negotiation.