Replies to post #530113 on Fannie Mae-No Politics (FNMA)

[philipmax]

Donotunderstand

"sorry I must say this"

'you just realized now that there is a potential for such dilution'?

That - IMO - has been the subject of many (and more) posts"

NO, I'm not a new-be! I know you said it in jest.It is a far gone conclusion that the intention is to nullify current owners sake in these companies. To what extent is Treasury going to dilute stakeholders is the issue.

There are two options IMHO.
1.- Retain the 79.9% Warrants and re-market it as a secondary offering.

2. Disregard the Warrants, and just issue new shares to shore up the capital.

Both options stick it to the current shareholders. My point is that the Warrants are more toxic to Treasury and downright deadly to current holders. If Gov't insists on exercising the Warrants, we'll be in litigation purgatory for the next 10 years.

Option 2 is dangerous as well, since we do not know how far the dilution will cut into our equity.

It's hard to keep up with all the opinions on this board as everyone is all-in with remarks and rebuttals. Healthy, but time consuming. All the best.