Fannie Mae-No Politics (FNMA)

[FOFreddie]

Hi LuLeVan, Something to consider if FNMA and FNMA were ever to come public again is that they would be included in the S&P500 and other capitalization weighted indicies. Normally Index funds and other asset managers end up owning 40% or more of the capitalization of index components since they may holdings for index funds or funds benchmarked to the S&P500. Citigroup capitalization is approximately $ 80 bn and Bank of America is in the $ 225 bn range. Both GSEs would have market caps greater than Citigroup and together greater than Bank of America. The point is that there would be natural demand for approximately $ 100 bn of equity just from index funds on the exit from Conservatorship.