Replies to post #223213 on Fannie Mae-No Politics (FNMA)

[Zargis]

I do not expect warrants to be out of the picture until potentially after gse release - if it occurs. I do admit it is possible for the government to make most cases go away by releasing and cancelling simultaneously, however it seems unlike 'them' to do so.

We have multiple court cases versus the government over the warrants in one form or another and how, the FHFA went into those agreements illegally. It looks like they do have some basis, however as I said.. i still weigh such a risk as 75% likely. Previously I felt it was 50% and before that, I gave it 10% when i first vested.

The more you know... *shrug*

Be well,

-zargis

[Bruce A Thompson]

Yank

You forget that Berkowitz and Icahn are friends. You have no idea what the deal was all about.

Here are some possibilities:

1. Icahn wanted in without driving the market up. Berkowitz did him a favor.

2. Berkowitz convinced Icahn to get in for the help and high profile he brings to the table and made him a deal he couldn't refuse.

3. Icahn may have spotted him the original purchase money.

4. Berkowitz could have won a bet made on the 14th tee.

5. Could have been payback for a favor done somewhere else.

6. Regardless of the why, Icahn stepped in with $50 million. The big boys are now in the game.

What do you have to offer other than lip service?

[Bruce A Thompson]

You also forget that Berkowitz holds

Options to purchase an additional 10% of FNMA for ~$3.50.