Replies to post #660971 on Fannie Mae-No Politics (FNMA)

[jog49]

Seems from the endless posts over the years, shareholders and non-shareholders alike worry about the SPS, JPS, NWS, Warrants, Conversions, Reverse splits . . . everything under the sun but not the most important issue of all . . . the conservatorships, the vehicle by which the government totally controls F&F. The only thing a shareholder is allowed, under present conditions, is t own the stock. The government has usurped all the privileges of stock ownership. You can't vote on any issue, you can't pick the BODs, you have no say on management and its issues, you can't be herard on any action beneficial or detrimental to the corporations ... you CAN"T do anything buy own the stock, a stock that is perpetually supressed because nobody wants to invest here anymore while under total government domination.

[Donotunderstand]

easy

utility model

GOV owns 49%

we own 51%

no capital raise

warrants gone (used to get to 49% in a deal !!)

GOV guarantee

capital kept by F and F about half the Calabria levels

no money moves either direction

F and F must support housing (TBD what that means)

F and F limited to a ROE of 8% ---- but that is 8% ---- which would allow the PPS to grow say 4% a year and dividend be reinstated and grow 4%

and any other company - institution - can have same utility - objectives - rules - limits in return for GOV TREASURY back up (but none will go for it)