Fannie Mae (FNMA)

[kthomp19]

benefit one class of investors at the cost of others

I have asked five or six times and you have yet to answer: how does the Moelis plan benefit prefs over commons? It envisions a 400% return for prefs and 400-700% for commons (the infamous $8-13 range). If anything that benefits commons over prefs.

In case of Moelis, Moelis themselves have realized the problems with their earlier plan and have rightly corrected with their new recommendations. But you seem to be still promoting the earlier plan.

Moelis's comments on the capital rule did not "correct" their earlier plan. The plan stands as-is, just pushed back by a year.

If FnF and shareholders decide that capital requirements can be met with the better plans, then they should be allowed to do so without any outside influence.

"Should" versus "will" again. This is what you think should happen, and since you (and I) have no power here, it's irrelevant.

If it wasn't for HERA's succession clause you would be right. But the companies remain in conservatorship, Treasury wields massive power and influence over the process, and the lawsuits are still outstanding. FnF and its shareholders are far from the only ones with a say here.