Fannie Mae-No Politics (FNMA)

[FOFreddie]

Glenn - why do you assume that common shareholders do not understand the points you have been making over and over and over? Everyone understands the risks outlined in the CBO Scenarios - it really is a matter of risk v return. The SPS could get wiped or reduced by a Separation of Powers remedy or a political resolution and the UST can realize its equity via the warrants. We need to see how Rop, Collins and Bhatti play out to see what the final UST negotiating strength will be. Bottom line is that if the JB Admin wanted legal certainty to push the Utility Model they would write down the JPS and rely on their warrants - they could go forward with a cramdown but they would run the risk that the whole Admin action would fail because of a future SCOTUS ruling.