Fannie Mae-No Politics (FNMA)

[f_f]

This could be pretty positive for Common:

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2. Recapitalizing the GSEs
As described above, each GSE should remain in conservatorship until it has retained or raised sufficient capital or other loss-absorbing capacity to operate in a safe and sound manner. Potential approaches to recapitalizing a GSE could entail one or more of the following, among other options:
? Eliminating all or a portion of the liquidation preference of Treasury’s senior preferred shares or exchanging all or a portion of that interest for common stock or other interests in the GSE;
? Adjusting the variable dividend on Treasury’s senior preferred shares so as to allow the GSE to retain earnings in excess of the $3 billion capital reserve currently permitted;
? Issuing shares of common or preferred stock, and perhaps also convertible debt or other loss-absorbing instruments, through private or public offerings, perhaps in connection with the exercise of Treasury’s warrants for 79.9% of the GSE’s common stock;
? Negotiating exchange offers for one or more classes of the GSE’s existing junior preferred stock; and
? Placing the GSE in receivership, to the extent permitted by law, to facilitate a restructuring of the capital structure.
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"? Issuing shares of common or preferred stock, and perhaps also convertible debt or other loss-absorbing instruments, through private or public offerings, perhaps in connection with the exercise of Treasury’s warrants for 79.9% of the GSE’s common stock;" This is very positive for common.