Fannie Mae (FNMA)

[sortman]

You don't understand how much dilution the common will incur. 1) Treasury will exercise the warrants, add 5 Billion shares to get Treasury to 79.9%. 2) SCOTUS will rule in our favor and nullify the 4th amendment and so 3rd amendment is still in place. According to court experts, if the 3rd amendment was the controlling document the senior preferred would be deemed paid and we would have overpaid by approximately $35 Billion. This means that the companies would have started to pay dividends to the preferred, and so the preferred are now at par + 5 years of dividends. The companies are trying to conserve cash so they will need to make a deal with the JPS to convert to common at say $3. Add 13 Billion shares. Companies now have $45 Billion retained earnings, $35 Billion from the Treasury, $35 Billion from JPS conversion, $115 Billion total. Raise $70 Billion and they are out of Conservatorship. How do you raise $70 Billion? Companies now have 19 Billion shares outstanding, Company worth $300 Billion, 23% = $70 Billion, 23% of 19 Billion shares = 4.4 Billion shares. Total outstanding shares = 23.4 Billion $300 Billion Company valuation = $12.82 per share.