Fannie Mae-No Politics (FNMA)

[capitalismforever]

but such value can be wiped out by the CORKERS who came damn close

Putting the business in recievership doesn't wipe out tangible equity. It wipes out the priority claim for some holders of the equity if it isn't large enough to satisfy last priority, which in the case of commons it wouldn't be. The attractiveness for commons is that if receivership doesn't take place and a recap and release happens, the commons have a large potential. However, for some of us, that's not investing - that's gambling. Preferreds know that tangible equity in a wind down will provide them the better opportunity to still profit. Downside risk is more important than upside potential to most true investors.

did you have a chance to do the math as to what is the true remnant value of F and F is one takes it through CH 7

I did. But, I got busy and forgot who I was talking to that day. Guess it was you.