Replies to post #508760 on Fannie Mae-No Politics (FNMA)

[Guido2]

Once out of conservatorship, only boards elected by common shareholders get to decide how to raise the capital.

[jeddiemack]

Your discussion points lack serious merit.

Of course it makes total sense to raise $50B into a company that makes $15Billion a year. The capital problem stems from the fact the government has SUCKED out ALL of the equity.

No reasonable CFO would put 80% dilution on its ownership base when 15% does the same at proper valuations. I'd be laughed out of the board room for even suggesting that at my company.