Fannie Mae-No Politics (FNMA)

[FOFreddie]

Ackman assumes the JPS are converted to common. Fannie and Freddie will both have to raise additional capital to meet a ECRF threshold and the JPS conversion helps fill the deficit and may be the catalyst to settle the outstanding law suits before EXIT. A JPS conversion will bring an additional 33 bn into Tier 1 capital prior to any outside capital raise.