Fannie Mae-No Politics (FNMA)

[YanksGhost]

The $33 B conversion (or not) will be known before the election in all likelihood. If CET1 capital is not lowered in the final Rule, as many comments request, the common dilution extravaganza is about to unfold to at least some extent... conversion, IPO, etc. If he backs off on CET1, more options exist.

I'm not predicting MC's end position except on total core and risk based capital that I previously suggested would be in the $300 to $325 B level as Tim Pagliara stated a short while back. If he changes the apportionment to less CET1, I would not be surprised at all. He almost has to make some concessions in the final rule to appear to be fair and balanced.

No matter the election outcome, Calabria has at least until Inauguration Day to get a lot of "stuff" done. I doubt he cares if Biden might dismiss him because until a court rules otherwise, he is bulletproof under HERA. Then he has a 4+ year of juicy severance due under the terms of his 5 year appointment contract, plus a huge gain in Civil Service defined benefit retirement benefits. He's golden, parachute-wise.

All my opinion, only.