Fannie Mae-No Politics (FNMA)

[FOFreddie]

Hi Kthomp

Voiding the SPS is also bad for the JPS because it is bad precedent which could be used to turn the JPS into a zero coupon type of cash flow structure in a consent decree.

My fear is that FHFA and UST enter into a Utility Model focused Consent Decree and leave the JPS in place with no divs until ultimate exit many years forward. Do you think that is possible.

If UST just has to rely on the warrants then it puts pressure on UST to honor the existing capital structure. Otherwise the SPS could be used to capture cash flows that should be used to pay divs to the JPS.

Crazy concern? It seems like something is up as Glenn has mentioned but JPS keep on trading down? Thoughts?

The Golden Rule is always best especially if you want a fair treatment for your self. JPS and Common should want fair treatment for both.