Fannie Mae (FNMA)

[contrarian bull]

If receivership ever happens (highly unlikely) junior preferreds stand in line in front of commons. Not only is this highly unlikely, if the senior preferreds remain on the balance sheet then neither junior preferreds nor commons will get anything

Remember - the junior preferred are on the balance sheet right beside the senior preferred. So - theoretically in a receivership/liquidation both junior and senior preferred will be paid in full.

Theoretically... if receivership happens you can expect the value of f&f's portfolio to drop due to all that paper flooding the market and most likely juniors would get nothing and senior preferred would take a serious haircut not to mention those warrants would be worthless. I think this haircut may motivate treasury to not push for receivership just because Corker wants it.