Replies to post #436655 on Fannie Mae-No Politics (FNMA)

[kthomp19]

If you agree that NWS should be gone and senior preferred declared paid off, why do we need Moelis?

Because the government needs an incentive to agree, i.e. the money from the warrants and getting out from under the lawsuits. If you're waiting on a complete court victory that gives the government nothing then good luck, it will take several more years at least, and Congress could pull the rug with legislation in the meantime. Not to mention the risk of actually losing the court cases.

I own both commons and prefs, so it's not like Moelis is all sunshine and rainbows to me. But I would much prefer the bird in the hand than any number of imagined dozens in the bush.

Moelis values FnF at $16 Billion To $26 Billion. Since 2013, FnF have paid more than this in 'dividends' annually.

Moelis values the current outstanding common shares at $16-26B. Many, many more shares would be issued under their plan.