Fannie Mae-No Politics (FNMA)

[Ace Trader]

Conversion ratios

Could be, but there are quite a few unanswered questions:

Would there be merger? .............................................................
We don't know at this point. There has been talk of it from Catman and others in Gov. But both have different business models and customers as far as loans etc. You would have to merge both there style of business into one model and that isn't easy to do.


What is the PSPA amount (187,215, 250) being converted?...............................
That's what we all want to know ! I did read in the SPSA agreement somewhere to the tune of warrants worth $0.01 and 1b shares. I could be wrong on that don't quote me.

Does JPS take a haircut?.....................................................................
It is safe to say YES unforthitly and so will commons for sure. How much? We just don't know and it's a guessing game

How big is the pie?...............................................................
Another great question we all would like to know!

When you add up the Common = Total - SPS - JPS you might end up with $1B or less, $10B or $20B.

Familymang is convinced it is $1B or less........................
Isn't the currant common for Fannie 1.4b and Freddie 650m ? If the SPSA is worth dollar for dollar of Market Cap (250b) then it depends on what valuation

It certainly will not be $20B or more, so the dreams of $20+ PPS are clearly not in the cards.

This is a lot of back-of-the-envelope, for sure.