Fannie Mae-No Politics (FNMA)

[RumplePigSkin]

nats - I have yet to see a compelling pov that points to a conversion at extremely favorable levels at the expense of common shareholders. The capital structure argument has the most likely impact for distressed companies. Covid19 notwithstanding, I don’t see how a conversion happens so quickly prior to GSE future clarification for the investment community.

Of the 4, 5, or 6 main items that need to be resolved, I would not put JPS conversion in the top 3 or 4. Meaning resolution on the first 3 items, even if attempted to be executed privately, will undoubtedly leak to the public as the items to be resolved require too many parties and are too large to be kept private.

This “big bang” theory is predicated on secrecy. With “insiders” all over these companies, I doubt it will be kept under wraps.

And then, if recap is to be done by the companies, I think everything will be equitably done without favoring capital structures of healthy companies.