Fannie Mae-No Politics (FNMA)

[The Man With No Name]

How's this for a reason. The FHFA and/or Treasury is likely to do something backhanded and of questionable legality. It may not be any of the things we are thinking about. Behind closed doors they are probably crafting a net-new way to stick it to shareholders.

Unless you are willing to share your 100% accurate crystal ball with the rest of the class, you need to sit back down.

If FHFA/Treasury dilutes you into oblivion, what do you think will happen? Do you think the price of commons will jump on the news of release before reality sets in on how they will make it happen?

If commons go green, they will have NO LIABILITY at all. If commons went to a nickel, AT MOST the liability would be $600M for FNMA. The government has already spoke about the conditions for release and with the winding down of the lawsuits, there is no liability left....now or in the future...that is more than the contemplated litigation reserve.