Fannie Mae-No Politics (FNMA)

[YanksGhost]

I just don't buy into the all or nothing supremacy of either common or JPS shares. And while the examples you raised on other bailed out preferreds getting LP is truthful, AIG shareholders were diluted but not wiped out.

The similarities between AIG and the GSEs are elementally stunning in similarity. But there is one HUGE difference that reposes in the length of time spent in financial jail, and the amount of overpayment beyond bailout money paid in to the benefit of taxpayers. AIG's bailout inequity was basically only litigated by Hank Greenberg and was thrashed by the Court and dismissed due to the financial red blanket condition that would have doomed shareholders without the bailout. This is NOT replicated in the GSE's financial condition in 2008, and the legal matters remaining open raise this fact to a substantial level. There is equal or greater opprtunity for common shares, here, depending on how the legal circus plays out.

I see an agreement of settlement coming, and some room for optimism in both JPS and common encampments in the future.

JMO.