Replies to post #529373 on Fannie Mae-No Politics (FNMA)

[kthomp19]

A taking of 80% of a company and via a sale to private individuals the collection of say 80B dollars used to pay down the deficit or fund a key piece of legislation would In My Opinion be ruled as a taking for public interest or public good

That $80B doesn't go to the government, it goes to the private companies Fannie and Freddie.



(from another post)

Gov (FHFA) decides to issue 4 x shares - call it 7B shares

Gov does so at 12 a share to create 84B head start to full core cap (with maybe 10-20 billion to buy warrants which maybe pushes price to 15)

The proceeds of the warrant shares only go to Treasury, not FnF. They do not help with a recap at all.

They don't hurt it either, as long as the warrants are exercised before the secondary offering.