Fannie Mae-No Politics (FNMA)

[camaro4me]

Let's wait and see what's in the capital plan.

I have to admit, I'm in the "or not" camp. I know this has been discussed ad nauseum on this Discussion Board, so feel free to ignore my thoughts.

I still fail to see why FnF would want to convert the JPS as the first item of business. I understand that an eventual conversion needs to be laid out in their capital plan, but they may choose to delay the execution of that until the end of 2021. That way they can maximize the value of a much higher share price (Just like TSLA did recently when their share price was soaring through the stratosphere). As long as they fully disclose their plan for eventually converting the JPS, it should be easy for new investors to buy into it. It should not be a problem to delay that conversion/buyout. To convert earlier than that would be overpaying for that capital, which makes no sense. If this Capital Plan is going to take multiple years (4-5 years?) to carry out anyway, why would you be in a rush to convert the JPS. I am with Whitney Tilson when it comes to my perspective on how they deal with JPS.

There are those on the BOD who are owners of common. I'm not aware that any are owners of JPS. So while they will do what is necessary with JPS to meet capital requirements, they are unlikely to do it sooner than necessary, because they have a personal interest as well as a fiduciary responsibility to the commons.