Conservatorship In Open Letter
After spending $187.5 billion to save the GSEs, the Federal government has received $213.1
billion in dividends, and it still owns preferred securities that Bove’s values at $240 billion.
Additional warrants to purchase 7.2 billion in common stock in the GSEs is worth $34 billion in
today’s market, but Bove believes their value would rise to $153 billion if Fannie Mae / Federal
National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan
Mortgage Corp (OTCBB:FMCC) are re-privatized. Altogether, the US gets $416 billion in cash
and stock from a $187.5 billion investment in about six years, “a staggering success in the