Fannie Mae-No Politics (FNMA)

[Donotunderstand]

easy

utility model

GOV owns 49%

we own 51%

no capital raise

warrants gone (used to get to 49% in a deal !!)

GOV guarantee

capital kept by F and F about half the Calabria levels

no money moves either direction

F and F must support housing (TBD what that means)

F and F limited to a ROE of 8% ---- but that is 8% ---- which would allow the PPS to grow say 4% a year and dividend be reinstated and grow 4%

and any other company - institution - can have same utility - objectives - rules - limits in return for GOV TREASURY back up (but none will go for it)