Fannie Mae-No Politics (FNMA)

[FOFreddie]

Long Common and Long JPS is not a Hedged position - it is a portfolio of two longs. Ackman is super smart and an activist. First get PAR for the JPS and then push back against UST if they try to screw common. Why would he let the UST screw common - the JPS is too small in the GSE Capital Stack to offset what UST may misappropriate. Who do you think is driving up common prices - it is not us on this Board and it is investors who dont worry about common going to 10 cents. I think you would agree that JPS should be probably twice the current value given where Common is trading - do you really think this rally is being driven by the unsophisticated and uninformed? Money is going to the most liquid part of the capital structure and will lead valuations.