Fannie Mae (FNMA)

[HoldenWalker99]

None of those companies had implicit guarantees from the government.

Regardless, fair value is what the GSEs would be worth in receivership, which should have happened in 2012 when they couldn’t make their 10% dividend payment.

Fortunately for many, the conservatorship continued so the common shares survived. What are they really worth? I don’t think much after junior preferred shareholders are compensated.

When 2008 happens again, shareholders will get wiped out in an orderly liquidation and new companies will have to fill the gap.