Fannie Mae-No Politics (FNMA)

[LuLeVan]

As far as I know, Ackman has only so many JPS as a hedge that a SPS-to-common-conversion results in plus-minus-zero for him. The gain on his JPS would just compensate for the near-total loss on his commons.

Ackman has disclosed his average share purchase price for commons and disclosed enough information on his jps holdings that one can ballpark his likely reward if jps are made whole and commons are "wiped out." I believe it is somewhere in the ball park of $100 million.

Ackman would only make money if the SPS are written off for free. In this case he would receive $25 for his JPS, plus (if the warrants are exercised) approximately $7 for his commons.

However, it is very unlikely that the government will write off its SPS as worthless. This is even considered "illegal" by some.