Replies to post #776457 on Fannie Mae-No Politics (FNMA)

[nagoya1]

So GSE insightful, thanks Lorraine.
Fnma

[LuLeVan]

Share prices will not matter concerning dilution.

They could use the last closing price, but they also could set 1 common = $1.00 before dilution. So you are right.

But psychologically, using $1.00 per common works better if the commons traded at $0.70 before. If they were still at 2.50$, using 1.00$ might be considered offensive ;-)

Most important is that the trading is halted, so they can do whatever they want.

[Achilles deFlandres]

This is the easiest and most correct answer. Applying Occam's Razor, the logic has nothing to do with F&F. I haven't been here a for a while and after checking in, the churn of discussion has a similar tone though the details regarding the law have evolved. The only principle guiding the future of F&F is that of monotonically increasing the size, scope and authority of the government. Ending the conservatorship accomplishes none of that.