Fannie Mae-No Politics (FNMA)

[Louie_Louie]

Please explain how equity needs restructuring when they are busy pulling the bottom out of the capitalization rule for "instant capitalization".?? And no, the government does not have to cancel its seniors or warrants if it wants to be the main drivers of the GSE's for a bit (few years after release) until they decide to cancel or sell whatever later on. But in that mean time, they can control our dividends (affects JPS more than commons), but not the stock price. The price of commons will always be capped appreciation wise, as long as government is in the picture, but many are wrong that any equity restructure will be needed. You can bet your last dollar that they will not be focused on making any group rich, just solidifying the GSE's safety and soundness once released, but the market is a very discerning and harsh arbitrator of value. Hence, the commons will appreciate, maybe not fully, the JPS will also....eventually, but a long slog ahead for dividends, so JPS will take much longer. The court cases existing are a red herring, much could affect the final outcome, but it won't be cram down, a gazillion shares, etc lol.

The government has many roads it can follow, many options it can create. Manipulation of price on both share classes should tell you all you need to know in how they do things.