Replies to post #665462 on Fannie Mae-No Politics (FNMA)

[401kobessive]

i stood up and clapped after i read that.
if the 3rd amendment is dead...and the tape is rewound, everyone wins.
some win more, but everyone.

[action8101]

Well said, sir!

[bradford86]

sure feel free to repurchase the warrants, but you're not taking into consideration that these are highly regulated GSEs and:

1. the capital rule is oppressive at best.. this prevents the GSEs from being able to be able to buy them back.
2. the letter agreement necessitates warrants exercised
3. no lawsuit challenges the warrants directly
4. i realize no one here believes any of this is true, well, that's too bad, because it is
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before you had the oppressive capital rule ackman could have been right like 15-40

the prevailing consensus these days is that the periodic commitment fee is the final cramdown to prevent commons from having too much upside

to me it is backwards that jps fell so much in proportion to commons..

then again, commons seem to be thinking that these companies recapitalize and they aren't diluted.

hate to break it to them, but if this recap takes 12 years and is on retained earnings alone, eventually the spspa will cramdown all common shareholders on top of the warrants so commons will own like 0.0001% of the equity.

i think you're looking at owning like 0-10% of post reorganization and recapitalized equity... all of the commons today

anyway good luck. i think you need it. amazing how they have performed so well when senior parts of the capital stack have had their faces punched in.. truly is backwards. will reverse..