Interesting. They may just wait for the courts to resolve all the major litigation issues as I don't think a buyer(s) would bring in new money without knowing exactly what they are buying. IN THE MEANTIME THE GSES BUILD CAPITAL ON THEIR BALANCE SHEET with the caveat that the LP may or may not be reduced or eliminated...
just a few problems with doing the smart move/right thing...
1. It's the gov't, they never do the smart thing 2. they don't want to make hedge funds rich 3. they don't want to make shareholders rich 4. they like having the GSE ATM's their prisoner forever 5. (anyone feel free to add to this list-etc etc).
If Gov wants to capitalize FnF with new fresh private capital then the options are very limited. If any thing is done at the cost of existing private shareholders then there is absolutely no hope of raising fresh private capital.
Any one of the Gov decisions like below rule out raising any new fresh private capital.
1. Continuation of Conservatorship 2. Continuation of any type of NWS including 4th amendment 3. Gov continuing the litigations with same old deceptive narratives and not settling all pending cases. 4. Not setting the SPS liquidation preference as fully paid 5. Exercising the warrants instead of allowing FnF to buyback. 6. Not compensating existing shareholders.
Why would any private investor want to put fresh money in FnF with any of the above decisions?
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