Fannie Mae-No Politics (FNMA)

[kthomp19]

Not sure if it was already mentioned on here but also note the Bloomberg article re: the hiring of MS and JPM where an update was made after publication in June.

Good find.

Furthering the point, Jamie Dimon himself said months instead of years:

“J.P. Morgan is pleased to be selected as Freddie Mac’s underwriting advisor,” the bank’s chairman and CEO Jamie Dimon said in prepared remarks. “We look forward to working side-by-side with Freddie Mac on this historic assignment in the months ahead.”

Why not say “spread over years”? Would the GSEs and these advisors agree to spread this process over years? Does that make sense for the parties involved? These are questions I’m asking myself as an investor.

Great points. JPM and MS have every incentive to raise capital as quickly as possible because their fees will be based on the size of the capital raise.

In fact, think about who wants a slow-walk here: current common shareholders (to try and avoid dilution) and the fellow travelers (to give Congress and/or a new FHFA director enough time to either maintain or re-impose the permanent "temporary" conservatorship, or finally kill FnF outright). I don't think I would want my incentives to be aligned with the fellow travelers, even in the short term.