Fannie Mae-No Politics (FNMA)

[ano]

A common to pref conversion still looks unrealistic to me, you didn’t convince me.

A negative to common conversion means you want more than the current market value conversion this is of course legally not possible.

The law says the current common holders are entitled to 20.1% of the companies, so you can convert within that range of the 20.1% (current market value) but it nowhere in the laws says FHFA is authorized to add additional shares and let commons pay for it, they are not authorized to do that, because it would be a taking of property that belong to commons and will not settle a law suit, I understand your wishful thinking but it just doesn’t work that way

The conversion is 100% legal I agree with you and you can do it tomorrow, but only at current market value, nothing more nothing less, so it will not be negative to prefs nor negative to commons, any other than market value conservation is not possible as the basics of the conversion rate cannot be determined due to the errors FHFA made, and a suspended dividend pref stock cannot ask the common suspended dividend stock to convert in a preferable rate at the cost of the common, it would not help anybody