Fannie Mae-No Politics (FNMA)

[Donotunderstand]

I would love for that -- paying down the LP - with difference between 2.40 and .0001 - to be the case


I have suggested and wondered if the Treasury will use some proceeds from the warrants - if exercised - in that fashion

I am late today - mid Monday - but hope you are right -and hope others have commented with citations

From my read - that distance - here now $2.40 does not exist other than to know it and see it

There are two prices at issue

.0001 and the price the TREASURY sells shares it gets with the warrants at - which could be 8 or12 or 20 ---- and not the current price

It comes down to "proceeds" or some such word - and IMO - the must be used to pay down LP is instruction to FHFA (F and F) that any money they get (the tiny and smaller amount) can not be added to capital or spent as needed on operations but must pay down the LP

I see no such instruction to Treasury - be it the 2.40 - minus a penny or so --- or the biggest pot which is - now that they have shares - what money does Treasury get from taking those to market at some later time

I hope you are right with this number you point out - as at least that is some money to F and F for capital (but I do not see it - and if such paymnt was made -- then F and F would need to use it to pay down the LP/Senior paper ------- and I want - wish - hope - expect the LP and Senior paper to be discharged as paid for with prior dividends (so such use of any F and F cash is wasteful)