Fannie Mae-No Politics (FNMA)

[FOFreddie]

The cash from the cramdown will go to UST when the stock is sold. If the UST sells 90 % of a GSE for$90 billion then the potential damages are $ 10 bn. That is the change in market value. It has nothing to do with today's prices and any takings action will not be ripe until the shares are sold by UST. It will be very easy to calculate the change in market value due to a takings because it will be a portion of the cash received.

The UST will not sell any shares for year's so we have no idea what the potential damages will be and probably there will not be one because there will be no cramdown. Right now it seems like we are talking about the bogeyman when we all should just get along and advocate for shareholder interests in general.