Replies to post #123761 on Fannie Mae-No Politics (FNMA)

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they can get rid of the "sweep" and start paying dividends to preferred shares and common equity given the companies are now profitable again.

Once the court starts, at any point, the government could also settle out of court. It depends on the strength of the cases.

I suspect once Fnf pays back the $187Bn, which is likely to be Q3, the tides will turn towards the benefit of shareholders. The sweep becomes very unreasonable.

I think the probably that the government nationalize the 2 companies is extremely low. For start, they will have to absolve the additional 6 Trillion on their balance sheet. Right now, because the government only owns 79.9% of the company, fnf debt is not on Fed's balance sheet. Given the debt ceiling debate, I find it very very hard to accept a 6 Trillion increase.