Replies to post #511729 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

This is well thought through, but you have one tragic flaw that Beavis & Butthead are sure to attack you on which is that you failed to show how only JPS goes up and common shares become next to worthless.
I like your process, anyway, which is why I receive so much hate for supporting a decent return for all shareholders.

Now you can look forward to War & Peace length replies demanding you recite legal statutes, code by code, that validate your plan. That's the way things roll here in Moelisland where all roads lead to JPS wealth and penury for everyone else.

LOL.

[robertus]

I sign it.

[Doc.007]

Hi cclose1,

I could accept Your Plan also, except the Point 5. "Exercise Warrants" !

Your Point 5. Is maybe too short written and not representing Your complete intent.
Have a look at 2018 FNMA SEC 10-K / Page 12 "Conservation Matter" and there is the exercise Price/ Value defined by Dollar 0.00001 , something Anybody with a little Math and Commonsense could Never Been Agree.

For example as any additional Definition "If Warrants exercised it would be only for the absolute Minimum necessary and the Warrants Common Shares considered by the Average Market Price from the last 60 Days and the considered Average Price would been taken by 1/2 (Half) for financial safety reasons."

If This Could Also Be OK With You.

Happy FNMA Investing

[ano]

You seem to forget the 2 dozen lawsuits and their claims, also nobody is talking about the warrants in the lawsuits as it is a done deal, they cannot be exercised

Since everyone has a plan, here is mine:

1. Undo Net worth sweep and consider the senior preferred shares repaid. This is fair, and in the best interest of the government as it must happen in order to create a private capital buffer. Will kill the majority if not all of the outstanding litigation.

2. Provide an expressed government guarantee in the amount of $113.9 billion, the remaining additional treasury line of credit obligation under the SPSPA, and apply it proportionately to the MBS issued during conservatorship. This will prevent lawsuits from purchasers of MBS during conservatorship that relied on the existence of the government line of credit when they purchased the MBS.

3. Allow expressed government guarantee to be accounted for as an asset by Fannie Mae. This is in line with GAAP.

4. Since current assets = current liabilities, the $113.9 Billion asset will allow for the sale of $113 Billion in assets to raise core capital.

5. Exercise warrants, in consideration of guarantee/modified SPSPA

6. Release, re-list, sell government stock, Recoup $113 Billion +

7. Regulate, gradually increase capital requirements to a level adequate to ensure government guarantee is never required.
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[car123]

Credit line from Gov means taxplayer is on hooked. No way.