Replies to post #518722 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Will not these warrants affect raising $100B for FnF capitalization?

No, they won't.

Both $100B and $125B equity SPO will be competing for the same fresh capital from the same private market during the same time for the same companies FnF.

No, this is 100% false. The $100B will come in immediately to get FnF recapped so they can be released, then the warrant proceeds will come in more slowly over time, after the release.

Let's say that the fantasy comes true and FnF common shares actually go to $50 with no reverse splits. Then the current outstanding shares would be worth $90B. By your logic, that money would have to be included in the recap!

Instead, the correct version is that the proceeds from any sale of common shares after release won't be needed for the recap.