Fannie Mae-No Politics (FNMA)

[LuLeVan]

Thanks Barron

Why do you expect the Secretary of the Treasury to act more ethically than the government as a whole? By the way Hank Paulson, Secretary of the Treasury in the Bush Admin, saved his former employee Goldman-Sachs by first sacrificing Lehman (which later could have been saved with TARP as well) to scare politicians and then forcing Washington to bail out AIG (GS had subprime junk insured with AIG). It was all completely unethical and self-serving. Of course, Hank Paulson had to put his stock holdings (worth several hundred million) into a trust while he was Secretary of the Treasury. But I wonder what happened after his term ended. I guess the trust was just given back to him, and all the profits from his corrupt, unethical policies ended up increasing his personal net worth.

“Treasury Secretary John Paulson... Would he dilute the shareholders? Hrmmm..."

Absolutely. As much as he possibly can. He owns a lot of juniors but no commons. If he becomes the Treasury Secretary then a senior-to-common conversion would benefit him in an official capacity and a junior-to-common conversion would benefit him in a personal capacity.