Fannie Mae-No Politics (FNMA)

[Donotunderstand]

and - as I think about it ---- I do not know the WARREN opinion on freeing FNMA

she may well want a gov utility - which comes with some guaranteed ROI and dividends - and added obligation to help the lower income WORKING class (current efforts really are a rounding error) --- AND AND a GOV guarantee to FNMA MBS holders which would be GREAT for us (and bluntly allow a utility model to take more risk )

That is very possible . Why not - many liberal democrats have argued for public utility model owned by private equity.

Such exit - privatization - runs into the same questions as ACKMAN or any other

1. % reserves required 2,5% 3% 5% ?
2. What is done with the LP/SP - the now on the books IOU from F and F to Treasury near 200B
3. What is done with the warrants

There are MANY and MANY privatization models and methods ----- that would be terrible for us if they truly involved massive dilution from SPOs of huge size . Many could be worse then her left leaning possible approach

It is all in the detail - see 1 2 3 - riddle me those answers - and we know how much OUR shares are worth (Ackman has detailed answers on all three and a PPS of say $30)

IMO any discussion of private and release that do not answer the 1 2 3 above --- are not telling us anything about our shares eventual value PPS Ackman IMO will talk to our shares in a positive way