Fannie Mae-No Politics (FNMA)

[RickNagra]

I am a bit confused by this article. Is the author saying that Commons upside potential is $25 and Preferreds is $50 ?

FnF don't need to raise capital just to remove the TCCA fees and the net worth sweep to Treasury in order to allow them to build capital allocating funds to a retained earnings account.

If we assume that the government's warrant representing 79.9% of the common equity will be cancelled because it has already been paid back, the common stocks have more upside than the junior preferred shares for the very reason that the junior preferred shares have a cap in their upside - their face value ($25 and $50 respectively).