Fannie Mae-No Politics (FNMA)

[WB_fan82]

KT: Two notes on the capital raising.

1. The warrant is for 80% of the existing equity. Can't raise external common until that warranted is exercised.

2. After selling new shares, the government would be somewhere between a significant minority and an overwhelming majority stakeholder. Even outside of c-ship, those votes can dictate whatever the governments wants to do. How does this problem get resolved?

Calabria says the need for capital is urgent, but he's in a funny situation where the TSY can't really take incremental steps. The warrant means if the govt is in for a penny, they are basically in for the pound.