Replies to post #692781 on Fannie Mae-No Politics (FNMA)

[clarencebeaks21]

Thanks for the detailed response. Your last point raises my biggest curiosity:

Quote: The juniors have the ability to just refuse all offers and stay above the existing and new common shares in the capital stack; that's their main advantage here.

If Conservator’s rights include (for now) the JPS shareholders’ certificate right of a 2/3 vote, then, cannot FHFA today simply direct each GSE’s board to cancel JPS?

Perhaps some compensation might be fairly paid, but, this choice would seem a purely discretionary one. Because, again, JPS shareholders lack voting rights, hence any such right (e.g., within a contract) has been temporarily displaced. In place of JPS holders, the FHFA-C would vote, and I can guess which way the vote would go.

[Donotunderstand]

note

simply will disagree with the part I do not agree with (ok?)

If GOV wants to use its WTS (4-5 B shares) to max effect ($$ to them) --- and if they want to have that money in say the next 12 months ---- then they must clarify number of common shares when dust settles now

In their best interest with simplicity --- they note the SRs are Paid for the 300K sent already and the warrants are priced at $20 to raise 80 plus Billion in next 12 months 000 and to get that $20 ----- there is no capital raise as the capital needed is cut in half and we are 70% there in that case

All in their interest and doable IMO without Congress

Actions that would take our price to the price of their Warrant secured shares - which they want to maximize (so minimize total shares)

just my current thinking and thinking for a year or so now