Replies to post #758980 on Fannie Mae-No Politics (FNMA)

[JSmith5]

Heads up - if the SPSA is deemed void - common shareholders are entitled to 20% of the market value of the GSEs

True. But what's lost in the discussion is the SPSA is that its an "up to".
The Government would not have to, and it may not be in their overall interest, to convert every penny. I think the same thing holds true for the warrants but would have to check.
It's not necessarily an all or nothing deal. I think that is behind the current prices of common and preferred.

But, for the Government, it's not about the money. It's about control of the housing market. About power and getting reelected. They have 100% control of the GSEs. Why would they want to release the GSEs - it makes no sense. And they are backed up by the courts, the current administration (and DeSantis is a Libertarian by the way - along with probably half the Republicans running for President), the current Congress and the press. Everyone but us, Bradford and Wiseguy is in favor of the status quo. I'ts working, got us through covid, and it would be foolish to mess with success. So here we stand (or sit).