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Re: Commons_Cancelled post# 606993

Thursday, 04/30/2020 6:05:39 PM

Thursday, April 30, 2020 6:05:39 PM

Post# of 864178
The writedowns are better than retained_earnings!

With retained earnings their capitalization goes up, but F&F have to increase liquidation preference by an equal amount.

With a writedown they also get to increase capitalization by retaining earnings, but they do not need to increase the senior liquidation preference. WIN!


Yikes! So much for a retained earnings Recap

Let's hope they're hard at work preparing to issue new GSE Common stock. Otherwise, it'll be another decade before the GSEs are recapped