Replies to post #165660 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

to be clear

the cap on payments would be 5B or say 8B - and apply to repayment (again) of the sr preferreds - but with zero interest on that so called outstanding debt

so FNMA agrees to pay back the debt obligation as if not already so done

Treasury agrees that interest paid already and sweep above interest payments from amend three will now suffice to be all the interest the GOV ever gets

Treasury agrees to some logical cap to payment to them each year -such as 50% of profit or a set dollar amount of say 5B

The rest of profit would go towards creating a capital base and then dividends to jrs and then to common

AND THERE WOULD BE NO DILUTION - GOV ALREADY GOT A TON OF INTEREST FOR ITS LOAN

or alternatively - go ahead and dilute 4:1 - but such dilution wipes the debt and interest obligations and seniors off the books as quid pro quo

we take 20% of FNMA but with zero debt to GOV and zero interest obligation

IMO that puts the common at 6-12 bucks and slowly jrs would move to par or say 75% of par?