Replies to post #582435 on Fannie Mae-No Politics (FNMA)

[kthomp19]

I'll be the first to admit that the Treasury doesn't even have that kind of coin to "give back."

We're talking about Treasury. They can create an unlimited number of dollars. And even if they're not willing to just print the money, they can offset the expense by converting the seniors to commons and selling them.

And even if they do, they'll likely maintain a Kung Fu grip on that $$. Perhaps even come up with a settlement that will include wiping out the dividend, SP, and warrants in return for having to payback less $$.

Paying $124B and converting the seniors to commons and selling them will net Treasury a profit. I don't think they will turn up their noses at that.

Either way, your conviction that the dividend will exist in perpetuity is quite ridiculous.

Treasury would get that dividend until they had a reason to convert the seniors. They won't just cancel them in the pay-back-$124B scenario. It's the monetization of the seniors that is of concern here. Treasury having the seniors intact gives them a ton of negotiating leverage.

[Doc.007]

Not having the money to pay has never been any problem for US Gov or Treasury, because as they always do and at a daily base Is Printing New Dollars, for this US Fitch, Moody's, S&P give good ratings, where only the International National Banks since decades complain about, because it's causing The Dollar Devaluation, Get Lower compare other Currencies and The Contrary For Necessary Stability !

[Donotunderstand]

on its face

the arrangement is going to be

bye bye warrants and SP and bye bye any over payment - consider them even and done

but I have trouble reaching 124B in excess of 10%