Fannie Mae-No Politics (FNMA)

[YanksGhost]

<< It's time to get rid of the Junior Preferred Stockholders... >>

There is only ONE scandalous reason I can envision why anyone would advocate getting rid of JPS and a big chunck of capital it represents. If the Board wipes them out (which appears possible under the FNMA Bylaws and HERA's succession rights), such action would likely and only be legal if Senior Preferred Stock were equally wiped out. And such action could, potentially, force the unequally distributed dividends to be returned since no receivership was declared and, thus, no succession preference can be invoked.

Is this the rational behind the Secret Squirrel Plan? To cheat JPS? To attempt some gambit to gain return of senior preferred dividends by bleeding them from taxpayers to kite common share value?