Replies to post #532853 on Fannie Mae-No Politics (FNMA)

[AZrealestate]

Is that your opinion or a fact on private placement vs IPO?

Regardless, if SPSA and warrants get cancelled, giving a sweetheart deal to private capital for, say, $50-75B and retained earnings for the rest would still be a great outcome for all. Ya ya, I know, you think there is zero chance of that happening.

[Doc.007]

They Would Only Buy The New Prefs to Replace The Old Now All Voided Prefs !!

That's Only A Good Thing Not To Worry About, CONTRARY !!

Resulting Remains Happy Investing Only For FNMA

Very Happy Weekend To Everybody

[bcde]

"Same reply I used on Twitter to same question...

If it implies “private placement,” it opens the door for major players (Berkshire Hathaway, BlackRock, Blackstone, etc.) to negotiate & command exceptional terms for their investment, better than an IPO. Allows them to take more value from existing common equity, given fixed pie. "

RuudG,
Either you are posting such opinions without knowing the legal and political issues or pumping JPS and promoting Moelis plan as usual.

Gov or FHFA bureaucrats should not be making any such official statements or hints on how to manage or capitalize private shareholder companies. If such statements lead to impairment of existing shareholder interests in the companies and benefit other private parties, then there are legal ramifications. If these statements can be traced to their crony connections then it makes situation far worse.

Once FnF come out of conservatorship, HERA 4617(f) does not protect misdeeds of these bureaucrats.

[car123]

"Private Capital" is a stepping stone for IPO/SPO because it just doesn't work.

IPO what?
IPO GSE while they are still in C-ship?
IPO $120B for GSE share which has $6B virtual capital (net worth is still zero as UST gets all the liquidation preference)?
IPO GSE while HERA can sweep all your $120B to save big banks in next housing downturn.

DOA