Fannie Mae-No Politics (FNMA)

[Commons_Cancelled]

Wait, if JPS conversion is already baked in, then what is the advantage of converting them?

Because CET-1 Capital is what matters most to Calabria. JPS are not counted towards CET-1.

Converting the ~$33B in JPS to Commons adds $33B to CET-1 Capital. Which means the GSEs need to raise $33B less capital to meet the CET-1 requirements.

Anyone that doesn't support converting JPS is simultaneously supporting the need to raise an additional $33B in Capital, further diluting Commons.