Fannie Mae-No Politics (FNMA)

[MannSinger]

Common/pref will NOT be wiped out b/c GSE needs 100B+ from them.

In 2009, FHFA director disagreed with a host on CNBC about reorganizing and wiping out existing shareholders. That host argued that reorganization takes place all the time. Then director said- this is not xyz compnay. The trust is very important to get hundreds of Billions of dollars as private money. No one will invest if FHFA/treasury wipeout old shareholders. They did in GM case. Just watch next meltdown, GM will be wiped out. Compare % growth in the share price of GM vs Dow. GM is stuck and dead money.