Replies to post #765957 on Fannie Mae-No Politics (FNMA)

[DaJester]

Helpful if the goal is immediate release at shareholders expense. What if the goal was immediate release at Treasury's expense since they concocted this whole scheme to begin with?

This whole thing happened with backdoor agreements. The whole thing can end the same way. Write down the ill-gotten LP. Lower the capital requirements to risk-based, either exercise the warrants or don't. And set the twins free. I don't know why some people are stuck on the SPS conversion being necessary to unwind anything...

[Lite]

A conversion is akin to the poison pill; however, it not only harms the shareholders, it harms a taxpayer/shareholder entity.

It they went this route, I believe chaos to the housing would ensue. Best to buy back the outstanding shares at a fair market price and let Congress re-charter the the twins.

[Louie_Louie]

Wrong,,wrong and wrong again. Dillution IS NOT THE ONLY PATH. Documents could get leaked, a former BOD could man up and want to clear their conscience before they die. There's so many posibilities, you can't list them all.
The GSE world does not revolve around JPS. This last Lamberth ruling should have told you that and should have been sobering. Put the rolled up dollar down, quit snorting that pixie dust of yours.

[trunkmonk]

Ps are Clueless and. Desperate, such a nice run.

[LuLeVan]

It's equally bad for JPS holders who bought at $25 in 2007/2008. After "organic recap" in 2040 they might get par value, but $25 in 2040 can buy as much as $6.25 in 2007/8.

And those "evil hedge funds" who bought FNMAS at $12 in 2019 might just get their money back if they have to wait till 2040.

That's why most JPS holders ask for instant recap/release, it avoids inflation losses.