Fannie Mae (FNMA)

[Donotunderstand]

why is that the only way

Is Fannie worth 100B --- say 10B earnings and 10x multiple

1-1.2B shares out there
WTS exercised --- rounded 5 Billion shares

oops - my math is off as I used 4B before and should use 5B ---- on the above earnings and multiple (changes up if you use 120B and 12 multiple)

Then there are 5B shares for company valued at 100B = 20 a share
or
Then there are 5B shares for company valued at 125B or 25 per share

So this dilution is IMO affordable --- unlike a full conversion of SP/LP to common

But yes - as your example too I think - we need to start with LS/SP is zero for money paid (and in my example for the extra 80-100B the GOV gets from WT)

And NO SPO but GOV immediately backs up the current capital while F and F pay no dividends to include no JPS dividends to collect reserve capital cash