Fannie Mae-No Politics (FNMA)

[Louie_Louie]

Anyone believing that the fake numbers for the GSE's and the governments theft of shares, money, etc having no affect or bearing on future capitalization, has their respective head buried deep in the sand.

All you need to look at is the current airlines bailout terms to understand just how wrong the GSE's TAKE OVER was.

Pref's are all noncummulative - meaning interest payments by the GSE's can be turned on and off as needed to support business objectives. Do not think be surprised if pref's are not offered anything other than holding their positions.

If that were expecting to be announced, many would sell, the price would drop, and the companies can buy back cheaply, then issue lower interest pref's to raise capital.

Definition for ya's

Non-cumulative preference shares are those shares that provide the shareholder fixed dividend amount each year from the company's net profit but in case the company fails to pay the dividend on such preference share to the shareholder in any year then such dividend cannot be claimed by the shareholder in future.