Fannie Mae-No Politics (FNMA)

[big-yank]

That is true for common shareholders. But if you read the Fairholme complaint, it comes from the different angle that the taking included dividends equivalent to those given government, and the restoration of liquidation preference. The dividend yield of these preferred stock serious is generous in this low interest market, and the liquidation preference is important because it is fixed at par and, consequently, does not float with share prices which were very low at the time the sweep was enacted.

The liquidation preference is important if the government winds down the GSEs or declares an insolvency.

JMHO.