Fannie Mae (FNMA)

[LuLeVan]

Why would any hedge fund manager want the UST to have a financial gain when they can? - that is capitalism.

In real-world capitalism, hedge funds and the government fight each other because both want to make (maximum) profits. The best example is Fannie/Freddie. Hedge funds like Pagliara and Hindes, who hold tons of JPS, want as large a share of the pre-IPO commons as possible, i.e. as large a percentage of ownership as possible. The government, which holds the SPS, wants the same. The compromise in 2020 was that Mnuchin and the hedge funds agreed to a simultaneous conversion of SPS and JPS (with an equal haircut) into commons. The deal did not go through simply because Mnuchin's offer was too bad.