Fannie Mae-No Politics (FNMA)

[Donotunderstand]

The derivative claims have a real chance to force Treasury to write a $125B check, and that would be a real political black eye. Two mitigating factors are that we are at least 2-3 years (trial, appeals court, petition for cert to the Supreme Court) from Treasury having to actually cut that check, and that Treasury has a way to recoup 79.9% (warrants) to 99.9% (senior pref conversion) of that money.


So - as I posted AFTER an ARTICLE so suggested

GOV wins and gets cash fast for its goals - say in 6 months ? ---

declare the Liquidation preference amount - the SPS paid by the 300B paid so far

cut the capital requirement in half

(no obligation to Treasury left - but still in conservatorship !!! - FHFA allows Treasury (or maybe even that is not needed) to exercise the warrants and get 4B (?) shares

Now - we REALLY FINALLY are just 20.001% but all 100% are done if the GOV declares there will be NO SPO - no more shares !!

With lower capital amount needed - Fannie alone say 50B - the GOV can then sell 4B shares at 12-15 a share (the resultant PE I think is still super healthy)

And we have 12-15
And GOV hsa 50B cash - right there - and right now for left of center help from the GOV --- that then does not even have to be from F and F - but Treasury could park that 50B back to F and F as restricted capital to be used only for working people housing

DONE