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Tuesday, September 01, 2020 11:31:57 AM
There have been a few people floating the comments by Calabria that commons "should have been wiped out," meaning that, in 2008-2009, they should have held the position of first loss. This is exactly the way Calabria intends to structure FNMA post-conservatorship. But as he makes clear in his paper, since they were not wiped out, they should be allowed to benefit in the future profitablity of the company.
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