Fannie Mae-No Politics (FNMA)

[chessmaster315]

Sorry, no.
By giving up the right to vote, it means that preferreds dont get to be heard.

Its like Kentucky Voters expecting to influence the state elections in New York. The state governors serve the people in their state, not in other states.

In a similar way, FNMA common shareholder vote for a BOD who represents common shareholder interests..not preferred. The BOD "only" represents preferred shareholder interests when they align with common shareholder interests.. However, when common shareholder interests and preferred shareholder interests are in conflict, the BOD follows the voters who elected him, or risk being expelled by the voters (common shareholders).

You just dont get the power of being able to vote. Its even greater with shareholders, because Ackman has millions and millions of votes..one for each share. This means the board had "better not piss off Ackman" or other huge sharholders, as they can get board members fired, and do so, if the board fails to represent common shareholder interests.

Again, the only time its true that the BOD represents both common and preferred is when there is no conflicts between common and preferred. Case in point: Preferred shareholders "want" a conversion to common which is highly favorable to preferred shareholders at the expense of common shareholders. Any BOD that did this would like be fired and the new board reverse the procedure.

Dont forget loyalty to the man who signs your checks.

Through our votes, we "sign" board member checks and demand loyalty to common shareholders.