Fannie Mae-No Politics (FNMA)

[kthomp19]

Commons can be cancelled at any time without warning.

I wouldn't go nearly that far. "Cancelling" shares, whether common or preferred, is something fraught with potential legal trouble. Common shareholders do have rights, even with FHFA as conservator. They just aren't spelled out in a specific contract the way the junior prefs are.

Going to zero via receivership or being heavily diluted through equity raises as part of a recap and/or junior pref conversion are clear risks that beset the commons. The first of those applies to the junior prefs as well.