Fannie Mae-No Politics (FNMA)

[YanksGhost]

Sorry, I cannot comprehend what this message intends to mean. The law is that ANY preferred stock represents a contract between the issuer and the purchaser that conveys non-voting rights to purchasers for dividends, as declared, and to liquidation preference rights in case of any insolvency. The contract between parties makes no definitional statement about "liabilities" and is simply what it is: A CONTRACT.

The dividend part of the contract is non-cumulative and subject to declaration by the enterprise's boards as deemed appropriate. The liquidation preference part of the contract is NOT variable or negotiable under the law. The contract sold to preferred stock owners guarantees secured liquidation value in EVERY case except when other secured investors have a higher ranked right to liquidation proceeds. Examples would be SENIOR preferred stockholders, bond holders and secured debt holders whose debt carry specific secured rights to a company's assets in a "WIND UP" liquidation.

There is NO situation where common shareholders get "something" or "everything" and preferred shareholders get nothing.

That is the LAW.

No reply necessary.