Replies to post #448642 on Fannie Mae-No Politics (FNMA)

[whipstick]

no

[Unhombrealado]

so you're investing in this stock without knowing the impact Moelis would have?

Here's the plan:

http://gsesafetyandsoundness.com/wp-content/uploads/2017/06/Safety-and-Soundness-Blueprint.pdf

It means warrants exercised, and preferred get converted to common on a ratio to make them whole to their par value. If Treasury makes 75B from the warrants, pps would be around 10$ on 2020.

If Treasury gives some of the business to GS, however, that's another story. Say other guarantors are given 30% of FnF's business, you'd expect the pps to drop at least that much.