Replies to post #706489 on Fannie Mae-No Politics (FNMA)

[JOoa0ky]

Precisely. They sold warrant shares until they recouped all of their loses. Then they sold a little bit more for a profit and then sold the rest back to AIG.

Warrant was used in AIG b/c gov was in loss before warrant.

In GSE, Gov has made $110B profit.

This is NOT bankrupt company or chap 11 because Gov made $110B. If Gov force for Chapter 11 then $110B needs to be distributed among SPS, JPS & common.

Also, $6 Trillions adds to deficit.

Have you heard any company where preferred shareholders are paid $100B & then company filed for chapter 11?

[tm3141]

The question is - where does it officially say the gummit has been paid back.

[Donotunderstand]

Not sure why this is compared to normal situations -- this is seriously unique - from day one of seizure by Bush and Paulson --- the entire FHFA (which CH 11 company has such a stand in our place AGENCY?)


Senior Paper is equity - so designed by GOV (which held and holds all the cards)

But clearly this SP is viewed by Treasury as DEBT ---- (it is not --- legally)

So have I seen cases where all debt is paid IN an 11

And - I do not see an 11 (never have - unlike many - like R in senate who had such wet dreams of killing off GSE - finally - since FDR created)

All of the above is IMO - IMO - 100% unrelated to WTS

WTS exist by GOV action that - as of 1-7-2021 is deemed legal
WTS were never any back up plan --- but extra bonus from day one . WHY? Answer - because GOV could get away with it and did it as a way to make money if things went well. So - IMO - IMO - these WTS were never some sort of protection for a negative event (they already owned 79%) but instead a throw in - if things went well !!! And they have IMO !!!

So - what I believe common need is for GOV to kill the SP for monies paid already (call it dividends galore - call it profit - call it fair and square pay back - I do not care --- more money left F and F then came in and GOV can declare victory and kill it - or GOV can demand it be paid in some fashion ----- right now that is how it sits - from my view. I want GOV to declare it paid off as VICTORY for all Americans

To help motivate GOV to do so -- GOV gets to exercise the WTS - and then sell associated shares to PUBLIC (dilute the monster hedges) - get 70-100B -- which they (GOV) can then brag is profit

For GOV to maximize the PPS it can get for the 4B shares or so it will sell for profit ------ reduce capital level needed (cut by 50%) and then announce there will be no SPO ------ none !! ---- Buyers of this 4B shares are buying 80% of company - (a fixed in cement number of shares is needed to make any sale ---- even if (YUK) Gov says it is selling these 4B shares and reserves the right for 3 years to issue out another say 3-4B shares if ... and if.... Market can then price at worst case