not saying it is right GOV can - ? - (I know there is debate but lets say yes for now) - convert the 100B or so for FANNIE alone of EQUITY they (GOV) argue has not been paid back (again I could argue but not now)
So they take that 100B and convert to common --- my sense from other posters is this gives them say 99% of the common (post some reverse splits) (Put aside the temporary ownership of the 7T debt)
If Fannie worth ? 125B based on just Fannie earnings --- then GOV would have shares worth 125B - and no "right to the old $100B)
Now --- if GOV wants to be a hog - they can HOLD the senior so called 100B and use the WTS but - IMO - if the 100B hangs out there - those 4B shares from WTS are worth the < 1 dollar So GOV says -- says - 100B paid back Now GOV has 4B shares of a company worth say 25 a share with 5B Shares ---- AND MORE AND MORE -- So that is what they should do In all of this the JPS just sits - IMO - and there is NO IPO/SPO -- and to raise capital to amount needed no JPS or common dividends for say 3 years. So JPS are worth on NPV about 70% of face and common 25 -- our 20%
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