Fannie Mae Preferred S (FNMAS)

[NobodyFromNowhere]

First order of business is to pay off Sr. Preferred (if they will let you) and then retain earnings for 10 years to build $200 billion in capital.

2nd order, exit conservatorship after FHFA considers you well-capitalized

3rd order, pay pfd dividends at same time you begin paying common dividends. Non-cumulative pfd dividends never get paid unless common are getting divs at the same time. Otherwise there is no incentive to pay the divs.

Make no mistake, pfd shareholders have no voting rights. That's a big reason Berkowitz came in with his power grab, break-up plan where he would get voting rights and control of Newco. Gotta remember, this is no ordinary bankruptcy.