Replies to post #432023 on Fannie Mae (FNMA)

[Donotunderstand]

Great reminder

I had forgotten about this - in large part because the legislature tied the hands of Treasury on what it could do

As I understand from another poster that "hands tied" ends this calendar year

So starting in January the Treasury can kill a bunch of stuff and has a lot more degrees of freedom overall

interesting

[Embers]

Stock price if warrants nullified?

What is the expected price impact if the warrants were nullified for the short term and long term?

Short Term- Would we expect to see the stock increase 500% and see $15/share immediately? This is assuming that the dilution of the number of shares would be eliminated.

Long Term- Would we expect back to the precrash $80 range after the conservatorship ends? I would not expect it would climb higher than the price before the crash without some strong reason.

[bradford86]

mnuchin isn't going to elect to cancel anything

the court cases are years away from final rulings

congress/admin action via a plan similar to moelis is where this is going, next 6 months