Replies to post #772680 on Fannie Mae-No Politics (FNMA)

[HappyAlways]

Conversion ? If NWS is illegal (already ruled a breached contract), the NWS excessive payments of $310B is to be refunded. After redeeming the jps at face value (total at $32B), shareholders will have $288B to enjoy. It can be used to settle the PSPA (at $191B in 2011), buy up the warrants and free the GSEs. What a wonderful world !

[JOoa0ky]

LuLeVan, the additional 0.4% of equity in FnF would still a mount to a million or two.

Would you leave a few mil on the table?

I would squeeze them completely dry. My policy is to never expect others to do something that I personally wouldn't do.

[trunkmonk]

Another fantasy dream now says likely. Do the Ps ever rest from trying to get something for nothing.

[bradford86]

If you look at the government’s balance sheet — and how it values the spspa and warrants— it exercises the warrants and then converts the spspa.

If it takes those two actions — the companies can go and raise equity capital via equity offerings

That is the theory — the spspa liq pref itself remains unchallenged in court.

[Donotunderstand]

YES
that IMO is true

and why the LP value of the SP is the enemy and concern over the WTS just got another reason to be a DISTANT concern