Fannie Mae-No Politics (FNMA)

[The Man With No Name]

the reason would be because it maximizes the government's valuation of its equity.

Strange how some can't grasp this concept.

Treasury can go from 80% to 99.9% and the maximum liability from any lawsuit would be less than $2B. If that additional 19.9% is worth more than $2B, that's money in the bank.

At $8 bucks with 80% dilution, the government could net another $13B or so.

That's 13 billion reasons.

The thing about being on the bottom of the capital stack...you take the most risk for a chance to reap the most reward.

But it's obvious what will happen to commons.