Fannie Mae-No Politics (FNMA)

[Louie_Louie]

It would not cost a whole lot to buy everything back right now. The shares floating (unowned common and JPS) can be bought at current market price if the FHFA ordered the lackey BOD to do so. The outstanding owned shares could be negotiated at a discount as well, say $10-20 for commons and 70% par for JPS. We all know they are worth more, but those just in for the gain and not invested long term, would jump on it, just to end this horrible snafu.

If FHFA and treasury were serious they'd go this route and.....say....give up 1/2 to 2/3rds of their warrants and seniors. Once shares are bought up, re IPO. Government then after IPO can cash in with their left over warrants and seniors.

Would be a good sEttlement type win for all involved, including the GSE's since a re IPO would give them much needed capital. More shares could be offered if government gives up that 1/2 to 2/3rd of shares they control in the shadows via ever changing amendments. This would show market participants the government is getting serious and some what fair minded.