Replies to post #648347 on Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Quote: "Do you expect anything before the SCOTUS hearing?

How does the FHFA get to an investible security for the capital raise. What are your thoughts about starting to pay out divs to common and JPS?

If the warrants stay unexercised the public common and JPS would be the only cash out the door - is there a way to pay dividends on new issued common and not on existing common? This would seem to violate Delaware Law?

Also - how do they avoid paying divs to the JPS if there is a dividend to a common security?"

1. Definitely Maybe! The Collins Plaintiffs are in a much better negotiating position, as SM may be motivated to keep MC in place for as long as 2024.

2. Consent Decree will do it, setting milestones under a legally binding contract between fhfa and the regulated entities with milestones in place for as long as necessary to get them well capitalized.

3. It would seem far fetched to deplete much needed capital on dividends when you are trying to raise capital.

4. I don't think it's legally possible to bifurcate dividends between new and old commons.

5. I don't think you can pay dividends to common and not now. JPM and MS, the FA'S have had plenty of time to come up with something, we may find out sooner than later!