Fannie Mae-No Politics (FNMA)

[raindancer1]

Im sure many have different views on this...personally, I like to be conservative and use jim millsteins (he did aig restructuring) valuation that he used in his proposed plan to congress...it assumes gov exercising it's warrants and spinning fnf off as mortgage insurers...he valued fannie at $18pps. If gov warrants arent exercised (may be a takings issue as they got them for .00001) or if gov reduces the senior preferreds of 117b by excess dividend payments over the 10% per year (currently about 50b) and/or fannie returns to previous form and function then that number would go up significantly...thats my short, down and dirty answer...hope it helps.