Fannie Mae-No Politics (FNMA)

[The Man With No Name]

Hi No Name
The GSEs are not subject to the US Bankruptcy Code and are NOT insolvent. In fact - they are two of the most profitable companies in the world.

The CBO analysis presents scenarios where the common securities and UST warrants have no value but this analysis is based on a set of assumptions where other scenarios result in value to the UST warrants and common which are pari passu with the warrants on a 20/80 basis.

https://www.cbo.gov/publication/56511

The value of common will be determined by politics, regulatory action and market conditions if they ever are released. The US Bankruptcy Code is irrelevant.

Wow, seems like you have it all figured out. What do you expect? $100/share for commons?

The ever-growing portfolio of the GSEs throws cold water on the CBO's estimates.

I know we're all in dream land here but can YOU tell me a scenario whereby YOUR commons have any value (without treasury all-of-a-sudden becoming charitable...which will never happen)?