Fannie Mae-No Politics (FNMA)

[bradford86]

They can only exercise the warrants and monetize them as part of recapitalizing and releasing fannie and freddie out of conservatorship

Obama didnt do it because he was able to steal more money via the net worth sweep than by monetizing the warrants at that time. In addition, he ran fhfa like a popsicle stand. Only calabria took reforming the gses into utilities seriously by changing their ecrf so that once they were recapitalized via restructuring and raising and retaining that fannie and freddie would be “fixed” to prevent another 2008

So those are two major reasons your analysis is flawed. You can lie to yourself if you wish but i would like to set the record straight regarding the perceived difficulty of exercising the warrants. The stage is set for them now, except the pending litigation would need to be resolved in that process.

And by the way. Sandra thompson has picked up with where calabria left off for the most part. So this is going to be recapitalization restructure raise and release. Probably consent decree

She just got sworn in. Will be interesting if she does chat on june 29. Cheers to all and lets hope spspa is written down and not converted for all you common shareholders — but i am not betting any $ on that hope. Im just betting on continued retaining earnings, restructuring, and then financial advisors raising/selling governments stake

Preferred are the place to be. Common risk/reward in my scenarios still favor preferred. Common valuations relative to preferred were insane after scotus ruling but have trended towards common sense since then. Scotus ruling was a huge opportunity for anyone to capitalize on moving to pfd