Fannie Mae-No Politics (FNMA)

[401kobessive]

The government purchased warrants on AIG. They converted them to sale around the time they were 28 dollars a share. They made a small profit on selling the shares. The FNMA warrants are different. They are tied to the budget ceiling. Heard that term this year? If they convert the warrants they will have to raise the budget ceiling by 4 Trillion dollars. Thats not gonna happen so, the warrants are safely tucked away in a dysfunctional governments imagination. I honestly think we are talking apples and oranges when comparing AIG and the GSEs. That said, the new LLC does directly compete with AIG on the insurance side. Time will tell...Its all an educated guess at best.