Fannie Mae-No Politics (FNMA)

[trojmn]

2) Treasury returns $125B to FnF and converts the seniors to commons (which crushes the existing commons into almost nothing) to recoup the outlay.

If seniors represent 80% of the company valuation and commons are 20%, after conversion both together is still 100% of the valuation of $125B plus everything F&F are as a business. Just the share of valuation is roughly ~$22 per common share. If its not I apologize but it would seem to be a long way from "almost nothing" and considerably more than $1.93.

-Trojmn