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Replies to post #774217 on Fannie Mae-No Politics (FNMA)

Replies to #774217 on Fannie Mae-No Politics (FNMA)

LuLeVan

11/13/23 9:12 AM

#774222 RE: Louie_Louie #774217

That makes zero sense, since volatility would be in an upward direction, which means stock price appreciation, which means more capital.



Wrong. It means less capital for the government, and more capital for the shareholders. Needless to say, this is not in the best interest of the FHFA and "the public that it serves" (Scotus). ;-)

LuLeVan

11/13/23 9:31 AM

#774224 RE: Louie_Louie #774217

"You mean you're hoping they stop trading so they can announce a JPS conversion so the JPS can benefit from the price increase."



No. The price of commons will be and remain frozen after the suspension of trading (frozen at the previous closing price). This means that in the combined SPS and JPS conversion to commons that is likely to follow, the bulk of the pie will go to the government and JPS holders, while the common stock holders will be left with peanuts. Like it or not.