Fannie Mae-No Politics (FNMA)

[Donotunderstand]

YUP

and of interest ---- as they tell the GM story - indeed a portion of NEW (NEWCOGM) equity - went to the union (over sized).

NOTE BENE --- The Union made big $$ pay concessions and thus was viewed as earning that equity --- (logical but still oversized) . i.e. in wall street language they took a hair cut too - but the bond haircut was IMO way too harsh

I recall as I did buy debt at the point where the UNION said - we need cash flow NOW v equity for the future and traded part or all of their "assigned future stock" for cash (at a discount). That day or week I bought junior debt paper still trading NYSE and in 6 months or so doubled or tripled that SPEC of about 5K (my memory fades other than the process)

Canadian GOV got part too

Summary --- IMO it was correct of the WH (whoever was there) to bail out GM as it was about to go bankrupt and there were no private bidders interested. There was a need as I read the various descriptions. So a tip of the hat for the intervention but --- YES - when the GOV did this --- I think DEBT overall got about 20 cents on the dollar because of how NEWCO equity was distributed --- (yes in ways not usual in an 11 or look alike) .