Replies to post #697671 on Fannie Mae-No Politics (FNMA)

[Guido2]

AIG was unable to pay back it's bailout. Treasury converted it's SPS to AIG common shares and then sold these shares. After the bailout was paid back, Treasury sold back the warrants it held. That was the standard offer for all recipients of the bailouts. The warrant buy back was valued at the individual corporation's average closing price for the prior 20 days.

Any day FHFA and Treasury decide to write down Fannie and Freddie SPS, they should be entitled to buy back their warrants at "fair value" which according to their warrant agreements is average closing price for prior 20 days.

[Donotunderstand]

kill the LP - which is massive

then cut capital required in half

no need for SPO

the GOV can keep WTS and use them in their PR explaining why we are getting 20-25 bucks a share

[bradford86]

fannie and freddie buying back their capital structure does not help them raise money. non starter.