Fannie Mae-No Politics (FNMA)

[LuLeVan]

"Even with that assumption, though, there is no reason for the short selling to be happening now. FnF are nowhere close to ready for a capital raise."

Why?

The 4th Amendment - which was given additional weight by the Scotus Opinion because it alleged that the Collins plaintiffs' demand for termination of the NWS had already been met - sets a deadline of Sept. 30, 2021, by which time a plan for recap/release is to be submitted.

Even though FnF's CET 1 capital is currently negative, a SPS-to-common conversion would delete the SPS on the balance sheet, bringing CET 1 well into positive territory, so that the missing capital to reach CET 1 of $175 billion (2.5% minimum) could realistically be raised?