Fannie Mae (FNMA)

[JCRod2018]

Analysis
Using Yahoo Finance https://finance.yahoo.com/quote/FNMA/balance-sheet?p=FNMA

Total assets $3,503,319,000,000 (12/31/19) x 3 % = $115,938,090,000

If warrants are exercised $70B will count towards it, ie 116B-70B will be needed, meaning $46B. With ~15B in income going to RE it will take 3 to 4 years to accrue. Calabria could do it then. I think Yellen will cooperate

For FNMA and FMCC;
Considering Retained Earnings will increase SPS' Liquidation preference, dollar by dollar, SPS' LP will go up from 191.5B on draws + 37.2B non-cash + 21B retained capital + 46B future RE. This is the issue that needs to be removed by SCOTUS. Treasury is asking too much with SPS, warrants and commitment fee. It didn't asked the same from investment banks. they created the mess in 2007 and now want the business from the GSEs
Warrants ok if contributing to Tier 1

Float is 1.16B for 20%, then Shares outstanding = 5.8B
PPS = 15B / 5.8B = 2.5 x PE 10 = $25/share in 3 years, SPS / LP cancelled
with momentum, $50/sh. Heck, PETCO's 1st day went up 63% on IPO # 3