Replies to post #431785 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

1. There is no interest on senior preferred paper

2. I understand that the GOV says to this day that all cash from F and F to Treasury is dividends and the SR PAPER is 100% alive - all of it

I suggest that in a deal - an agreement to move forward with a viable F and F

That in that future deal one view the GOV has entering the negotiation with two birds in two hands

They own the warrants and can dilute us 4 to 1 or so

They own the SR PAPER

If the GOV is interested in seeing F and F alive and well (if) then the GOV could call the senior paper "gone"

That gives F and F tons of capital right there (as the zero capital position is with an obligation to pay 185 B or so)

The GOV then says - ok you are free and have that capital cushion but we the GOV will dilute the equity holders with the warrants

That would not be bad as we would own 20% of a fully capitalized F and F