Fannie Mae Preferred S (FNMAS)

[big-yank]

In 2009 Hank Paulson laid out four alternatives for the future of the GSEs. If I can retrieve the link, I will post it. His believe as is mirrored by many withing government is that the GSE business model FAILED, leading up to the bailout. And, yes, I know every nuance of objections to that position, so let's not rehash that conflict. The net, net is that the courts, not the government will decide who gets what out of all this. The courts could very easily decide to award $ gazillions to pfd shareholders and crapshit to common shareholders. I'm not saying that wuld be right. I'm just saying that judicial verdicts, especially in a jury trial scenario that involves complex financial and governance issues that the average Joe/Josphine never has experienced in a lifetime of experience in the financial laity.

As for the existing 30 year GSE model, that is much of the recent discussion on CSS/CSPand whether, in fact, a better mousetrap has been developed that potentially obsoletes one (FNMA) GSE and may leave one (FMCC) GSE in a position to survive and prosper because it favors small thrifts and local and regional S&L's, not TBTF banks that many in Congress and running for office want to split up and/or shut down (Sanders and Clinton).