Fannie Mae-No Politics (FNMA)

[LuLeVan]

The new commons that will be issued upon recap/release will probably be priced 10 to 20% below fair market value. Therefore they will be bought until their price level gets closer to fair value. Pricing the new commons below fair market value gives new investors an incentive to buy them (to avoid a "broken IPO").

Legacy commons will own new commons as well, but only after a reverse split to the tune of 100 to 1 (or even 1000 to 1) following the widely expected SPS-to-common-conversion that takes place upon recap/release.

I think at release commons will immediately realize gains