Fannie Mae-No Politics (FNMA)

[Sogo]

Thanks for straightening me out, Obit. I'd read and understood the part in the proposal where NewCo claims all operating activities. But I somehow wasn't perfectly clearly understanding that they are indeed talking about replacing the entirety of Fnf, not just "part of FnF" as many articles keep saying. So I thought the run-off applied only to the legacies of "part" of the GSEs left in operation after Berkowitz buys "part" of them. Ok, that's not the case at all. Wow, this is quite a development for common holders to digest. DC reform becomes moot because as you say, The Berkowitz purchase IS the reform. Got it.

Your posts today were invaluable to me and others.

Berkowitz seems to suggest the run-off of the GSEs could be as good for commons as a simple release from cship might be. With one set of preferred removed from a position ahead of commons in the line of reimbursements, I wonder if it might really be a highly profitable run-off for commons. But there's inherent risk that any run-off will be conducted fairly. If anyone here has roughly estimated what might be left for commons (per share) after running off FNMA, please share (I know it's hard to estimate with so many variables and projecting 5 yrs into the future). But If it's in the $10 pps range or so, it could encourage a lot of common holders to hold throughout the volatile days that are likely ahead as the proposal's adoption is debated and as the run-off period potentially gets underway.