Fannie Mae-No Politics (FNMA)

[Donotunderstand]

yup

and re preferred shares

recall banks all over the company owned tons and then more tons of these preferred shares as top level capital

banks by "law-regulation" can not hold more thatn 5% of top level reseves in any company other than TREASURY. The one exception is - yup - fannie mae preferreds - seriously

Paulson was asked in the announcement press conference or some apperance that week --- WELL what about all the banks that held tons of preferreds and are thus now in big trouble? He answered that they would be looked at "case by case" --- i.e. they would die and be taken over by bigger TBTF banks !!