Replies to post #743140 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

I believe the government will wait until the amount in dispute of all remaining lawsuits has become less than $5 billion. That amount has been set aside for settlements of remaining disputes under the Jan. 2020 Fourth Letter Agreement. Recap/release may be coming sooner than some naysayers here believe. The Dec. 2020 CBO paper by Susan Wachter et. al. presents two scenarios with a capital raise in 2023 and 2025. According to this, recap/release should happen no later than 2025. If Biden is smart (big "if"), he will do it in 2023 to spend the up to $100 billion the government earns on its stake as he sees fit.

Care to hazard a GUESS on the eventual outcome (if any) during our remaining lifetimes?

[bradford86]

Admin led recap and release during our lifetimes to monetize the government’s equity position and move on with life under the new capital rule and capital planning rule. Everything happens for a reason. Enjoy 2023 for those of us who are positioned accordingly

[mrfence]

In 2028 the warrants expire then things happen. It will be fun to watch it become a topic of discussion by a Government that's completely disconnected from what happened 20 years prior (during an election year) when it's already to late to do anything towards getting any actual value for the warrants while all bridges to warrant value are ablaze burning off the ineptitude soaked scaffolding barely supporting Gooberments worthless stake.

The good news is we're 75% of the way there.

HAPPY NEW YEAR FnF!