Fannie Mae-No Politics (FNMA)

[eltatriton]

The AH news is GREAT! It sounds like what's being reported is the Moelis plan. Preferred being made whole, while commons not being made whole due to massive dilution. Preferred have the contractual claims so it make sense they'd be made whole, and new, private capital is raised through the issuance of additional common stock.

It looks like Corker and Warner have somewhat switched sides. While their original plan was to wind F&F down, Mnuchin has made it clear that F&F are here to stay, so Corker and Warner are just shrinking F&F, leaving something for the TBTF to jump on.

Ackman knew about Corker rewriting his GSE bill. That explains his recent praise for Corker, as well as him adding to his F&F positions. Remember, he has said WITH warrants and stock dilution that he sees this as a sub $20 stock IIRC.

By 'commons not faring as well', I think the author just means preferred are made whole, while commons aren't. It's an ambiguous comment, open to interpretation.