Fannie Mae-No Politics (FNMA)

[Guido2]

Calhoun's expressed views:
1) Write down SPS.
2) Lower the capital requirements.
3) Transfer the warrants to benefit affordable housing and racial equality.

Pros:
1) Easier and faster for Fannie and Freddie to be declared adequately capitalized.
2) Preferred dividends should be restored which will be reflected in the pps.
3) Majority of the lawsuits will be resolved.

Cons:
1) Warrants dilute legacy common equity by roughly 80%.

Thank God for derivative plaintiffs! The fight will continue.