Replies to post #693317 on Fannie Mae-No Politics (FNMA)

[FFFacts]

I say again what makes you think any of that matters if after the court rules on a full b;lpwn takings/nationalization that the shares wouldn't get extinguished and compensation is due only to those that held shares on the date of nationalization?

[Donotunderstand]

But why would the conversion rate have to depend on the market price of the commons at all? Treasury only has to negotiate with FHFA, who has no fiduciary duty to shareholders. If they want a dilution factor of 200 as a condition to let the seniors go, who is going to tell them no?

?

If GOV can get the same dollars - and it should be able to do just that - why use 200 dilution factor when they can use say 2 as a dilution factor

why

the PPS value of current WTS

why would they dilute that 200x --- if they can get the exact same sr paper money for near zero dilution and then cash in WTS at say 100 a share common

[LuLeVan]

"Even with that assumption, though, there is no reason for the short selling to be happening now. FnF are nowhere close to ready for a capital raise."

Why?

The 4th Amendment - which was given additional weight by the Scotus Opinion because it alleged that the Collins plaintiffs' demand for termination of the NWS had already been met - sets a deadline of Sept. 30, 2021, by which time a plan for recap/release is to be submitted.

Even though FnF's CET 1 capital is currently negative, a SPS-to-common conversion would delete the SPS on the balance sheet, bringing CET 1 well into positive territory, so that the missing capital to reach CET 1 of $175 billion (2.5% minimum) could realistically be raised?