Fannie Mae-No Politics (FNMA)

[FOFreddie]

Hi Glenn,

The correct order is :

1. Dilution necessary for Capital Raise
2. Warrants
3. SPSA

All the policy discussions are what is the required ROI for private capital and what are the different ROIs necessary for a Utility Model or the return to the historical model for the GSEs.

Do you know when we should expect the new FHFA Capital Rule to be released. As TH mentioned this will be very important and the GSEs will be close to meeting a 2.5% capital ratio in the next few years. What did he say about the amount of new capital needed- maybe less than $ 50 bn even in the next couple of years?

JPS are generally trading at 8% of Par or a 12.5 times upside. Dont you think the market has this figured out and the potential return for common is greater than 12.5 times?