Fannie Mae-No Politics (FNMA)

[RumplePigSkin]

Any money made by Treasury = the delta between the execution price (.0001 per share) and the market price = $2.40 is essentially all profit = your big pot.

That big pot must be used to pay down the liquidation preference of the sr preferred shares.

There will need to be a significant update to the warrants to avoid serious future litigation on a takings claim. The cynic in me almost feels the warrants have been used publicly as a threat to keep the price down, with no intention of executing even close to all of the warrants.

Also, executing the warrants now would be foolhardy as you miss significant upside potential on SP appreciation. At these levels, the Treasury would make ~15 billion. FnF would gladly add the $15 billion to their account over time to avoid dilution, and, what many of us have been saying for a while, one net transaction to wash the $30 billion overpayment with the warrants. There are creative ways to get this done but the lawsuits would need to be settled first and ACG was also hoping for that outcome.

JPS were also pushing that narrative hard - the cynic in me also feels the JPS marketing campaign is there to sell the JPS at all times, almost as if Paulson is trying to unwind his position and buy commons ... but I digress ...

Let’s see what happens ... Significant litigation risk until Scotus rules = no capital raise for a long time ...