Fannie Mae-No Politics (FNMA)

[LuLeVan]

If stocks fell to zero, the government would not see a dime from its "investment" (SPS). Nor would the warrant exercise yield a dime. Also, FnF currently build equity because the NWS is paused. The only chance to make any money at zero share price would be to reinstate the NWS. However, there is no convincing argument for that anymore because "death spiral" is no longer convincing at $20 billion profit per year. The path of recap/release can no longer be left credibly. Therefore, the only way for the government to still make money out of its "investment" is recap/release and, if necessary, exercise the warrants and/or convert the SPS in whole or in part into common shares.