Fannie Mae-No Politics (FNMA)

[bcde]

Let's all band together and hope for 3-4X for common and preferred. I don't think anyone in government is going to let existing common shareholders get 5X, 10X, 20X, 50X, etc. on their investment. Doesn't work like that in life.

RuudG,

Thanks, Legally Gov or conservatorship can not decide on who gets how much.
It will lead to more litigations.

Probably gov will follow some well guided legal framework and implement it rather than fudge the framework so that it meets some criteria on who gets how much.

By this time Gov knows fairly well what will be safe and successful framework for release and rehabilitation GSEs. Probably this framework will not consider who gets how much other than, whether
1. Gov was paidback with expeced rate of return
2. future risks to fnf, taxpayers, financial system and economy
3. how to end all current lawsuits
4. how to prevent future lawsuits

Since fnf have fully paid back there is no cost to gov other than costs and risks involved in case of failed release and rehabilitation.