Fannie Mae-No Politics (FNMA)

[kthomp19]

on what basis does the Treasury have the right to convert its SPS to common

Because Treasury owns the seniors and they are equity that, in conjunction with an agreement with FHFA, can be converted to another form of equity.

You need to reverse the question: on what basis does Treasury not have the right to convert the seniors to common?

If Treasury returns $125B to FnF and ends the NWS once and for all, every single lawsuit other than Washington Federal instantly disappears (they would all be moot; the NWS would have been unwound at that point).

Treasury would then convert the seniors to recoup the $125B (and then some). They would convert specifically to commons because of CET1 capital requirements.