Fannie Mae-No Politics (FNMA)

[HoldenWalker99]

Not sure about "wiped out" but significantly diluted seems very possible. Recapitalization will be done on the backs and dime of common shareholders.

At this point, upside for common and preferred is similar and there's added benefit to preferred (as outline below in quote). "But HERA!" yells rekcusdo.

I sold my remaining common position yesterday; now 100% preferred from 90-80%/10-20% preferred/common. Still think both are a decent lottery ticket; just feel a little safer with preferred.

I agree with Jim Hodges point and I firmly believe Mnuchin will have no problem wiping out common equity. He could care less about shareholders. Prfd have a decent chance for success in the end only because of their capital structure preference, contractual rights and deep pocket litigants, but I would not want to have a large amount of my money in common. Nothing short of completely stupid at this point.