Replies to post #853754 on Fannie Mae-No Politics (FNMA)

[1203Simon]

Fannie was not part of the lawsuit, only Freddy.  And, I think the damages for the common were only about 5–10 cents a share.

[FOFreddie]

Yes - sorry - I think we are thinking/hoping along the same lines for our JPS shares - I own both mostly Freddie for JPS and all FMCC - investing in the long game. There are two things that make a lot of sense that has not happened - 1. an Uplist and 2. Reduction in ERCF thresholds. Why hasnt common been uplisted and why is FNMA reporting a return on CET1 Capital with Buffers if it is going to be reduced. The JPS guys had been pushing for conversion for a while, and I imagine Paulson and Moelis still is - the question is what is fair and would be attractive to the JPS guys - perhaps based off a market price exchange ratio with a premium? If JPS agreed as part of the Lamberth Settlement it would bring $ 34 bn of CET1 capital on the balance sheet and still leave room for the common to trade in the $ 40 day range. The Lamberth damages could be converted into common based on the same historical average price for each Series. Got to believe Paulson and Moelis are thinking along the same lines.