Fannie Mae-No Politics (FNMA)

[Louie_Louie]

I myself do not see how they can legally and morally degrade or dilute 20.1% without shooting themselves in their 79.9% foot. So if they want to maximize that 79.9, then so goes the 20.1.

I've always thought that if the companies were never released as is, and any spin off or re-ipo plan, that it would be a better plan to let the companies buy out all shares and prefs of all classes by doing a grand bargain. They could simplify and gain more by doing this, in my opinion. You (meaning the companies with current capital) buy out prefs at say 65 or 70% of par, and the 20.1 of commons at about $20-25 a share. Everyone takes a hair cut in that situation as far as fair value. Then the companies do 2-3 offerings over about a 2 year period. I bet this would bring them far closer to the capital requirement than any other plan, even though they'd have to spend some to get there. It's the governments lone greed factor that keeps standing in the way of any common sense resolution.