Fannie Mae-No Politics (FNMA)

[blownaccount9]

I know people think I’m seemingly a pref shill or something, but I tend to agree the government would want to extract as much value upon release as possible AND do it as cleanly as possible making getting their position sold simple over time.

1. They are going to want common shares.
2. They need demand from investors for this shares. Complicated structures or screwing people who have been stuck 15 years is the easiest way to prevent anyone from touching them any time soon.
3. They need to make jps whole, they need to give commons the chance to make it back to $40-50 a share reasonably soon. Once everyone who has been holding gets their payday we will shout from the rooftops and drive the demand for shares.

Government stands to benefit most if they exercise warrants and cancel any other beneficial ownership they have. Getting 80% of the company would be huge for them. At current earnings it would easily put shares around $20-30 right away and up to $40-$50 or more depending on earnings within a year or 2. They absolutely need huge interest in shares though otherwise they’ll never be able to exit their massive position