Replies to post #846243 on Fannie Mae-No Politics (FNMA)

[Lionscantwinagame]

Might have to do with the absurd number of shares created so that the government can bilk more out of this bastardized conservatorship. Or the fact that the government will maintain a heavy control in the companies post "IPO" and past shareholders were unjustly deprived of all equity. That shareholder rights don't amount to anything. Wasn't Fannie Mae sold by the government in 1968. Now they want to graciously sell 95% of the companies all over again. I honestly don't see much interest for 10s of billions of new shares in a highly politicized company where the past shareholders were deprived of all value for 17 years and then flat out robbed at the end. Can't see a massive valuation placed on them following that or an "oversubscribed" share offering.

[Achilles deFlandres]

Hmmmm let's see. The conservator/ regulator is the largest shareholder and will call the shots. That same conservator apparantly because of a very long and consistent track record is proven to not care about profit or the economy which then will have ripple effects on the share values held by others. 

[bradford86]

it should be the same regardless of who owns it or whatever restructuring mechanics happen; frankly, although the market dynamics of having a big seller out there selling down their stake will lower the valuation some a la aig.