Replies to post #660677 on Fannie Mae-No Politics (FNMA)

[action8101]

Wrong again

[IL Padrino]

I was really confused how he came to that conclusion. I still don’t see SPS converted with capital raise.

[Commons_Cancelled]

All capital has to come from Common raises. That's correct!

Which is why JPS will likely still need to Convert to Commons as it will alleviate ~$33B in additional capital raises being required (now we know the GSEs are capped at $70B each in raises, this becomes even more important to remember!).

[RickNagra]

No. Urban Kao Boy is from LA and is full of himself. He only owns preferred shares and consequently will bash the commons to death. This dilution theory is incorrect. Recapitalization will be a slow process with retained earnings. Now granted Calabria wants to do an IPO to speed things up. How much can you possibly raise with an IPO ? Last year the total combined IPO all companies in the USA was about $30B. We need $283B. Be serious. A capital raise is futile. It is virtually all retained earrings. Urban Kao Boy is a fool. I have told him multiple times on Twitter.

It also confirms that the capital raises will come from the bottom of the cap stack and will dilute the common to hell.