Fannie Mae-No Politics (FNMA)

[kthomp19]

About a possible preferred-to-common conversion:

The 2015 10-K says that core capital includes stated value of (junior) preferred stock, which is currently $19.13B, and stated value of common stock.

My ignorance is on display now because I couldn't find the common stock's actual stated value, but it is usually a rather small amount, with nearly all of the IPO proceeds being accounted for as paid-in capital.

Since there are just under 1.6B common shares outstanding, the total stated value of those is likely $16M (if the stated value is $0.01) or even less. Thus converting junior preferreds to commons will hurt core capital substantially, unless they offer 1000+ shares for each $50 of junior preferred stated value (lol).