Fannie Mae-No Politics (FNMA)

[Louie_Louie]

Why was this post of mine removed for being off topic?

I understand completely. The recap happens via the courts via derivative claims and finding that all or most of the backdoor dealings that were done to steal all the GSE's wealth will be reversed. Boom! Recap. Maybe not entirely....maybe minimum core capital required is hit, depends on how mean courts wanna get....so they withhold dividends from commons and interest from pref's until they are at full capitalization. Possibly a small stock offering or, as this will be a few years down the road, by then the pref's paying high interest will be dirt cheap, the GSE's can buy back as much as they can and reissue lower interest bearing prefs to raise additional capital.

I am very skeptical that the courts are going to find direct claims for pref's and back interest,,AND a swap for commons. Talk to KT, he runs the commons posters down all day yet he says 10 to possibly 30 commons per a pref share, lmao. If what he says is true and he beleives that and that commons have no upside, then he is in a catch 22 along with other nonsense posters.

Warren Buffett got the hell out of Dodge GSE way back - ya know why? His pref's were non cumulative then and they still are today. You probably own some of what he had.
He did a Ben Graham analysis of the GSE'S pref's situation and he and Munger both said "lets bail"