Fannie Mae-No Politics (FNMA)

[capitalismforever]

The preferreds are more risk averse than the commons because of their preferential rights to the equity. Don't assume the companies won't be liquidated. I'm not saying they will or won't. Just don't assume that they can't be, because that's definitely an option.

Conservatorship is nearly identical to a chapter 11, if you understand the process of a chapter 11 which is to conserve and protect the assets of the business until a resolution can be determined.