Fannie Mae-No Politics (FNMA)

[Sogo]

Fnma commons would not have gone to zero, however. We know the GSEs were not nearly insolvent, and that there were standing offers of money/capital injections from international sources (china). Plus there was the real possibility of injections via in-kind arrangements.

In AIG's case, did any of that exist? If not, then maybe the judge had some justification for refusing compensation to AIG common shareholders, bc essentially the company did become insolvent. But since FNMA and FMAC were not on their way to insolvency, the commons should get compensated / warrants canceled.