Replies to post #349867 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

Here we can agree - although in an indirect fashion

I do not see any cash moving from UST to F and F as a result of any of the litigation. Nothing for preferred shares or common

A win is the end of the NWS

At the lowest win (other than remand back to lower court) the 10% dividend is found kosher and it is put back in place

The amount "over paid" is not paid back but is viewed as either a pay down on the "Senior Preferred Capital Amount" or held in escrow to offset the 10% obligation going forward

The warrants will be exercised

As always I want - hope - sort of expect - that GOV will "sell its 79.9% to the public in a sort of IPO with the proceeds going to capitalize F and F

So the GOV keeps the cash it got in all cases
And IMO a good result is the NWS ends - the 10% ends - the amount over paid in dividend is subtracted from the "capital owed" or maybe all of it is erased as paid

but the warrants stay out there - we get diluted as common - but we then own 20% of a company with lots of capital (as raised from the dilution being a sale of shares to the public with proceeds to go to capitalize F and F