Fannie Mae-No Politics (FNMA)

[kthomp19]

non-convertable shares would be challenged in Delaware.

This shows a complete misunderstanding of what "non-convertible" means, one that I addressed 18 months ago.

What it does mean is that neither the holder of the shares nor the issuing company can unilaterally force a conversion to happen.

What it does not mean is that the shares can never be converted for any reason.

The seniors (and the juniors) can be converted to commons if the holder of the shares and the issuing company (or FHFA as conservator, if they are still in conservatorship) both agree to terms. Sections about non-convertability in the contracts do not prevent a conversion offer or agreement being made.

If someone wants to throw their time and money away challenging either conversion in court they have every right to. Just be aware that such a challenge won't undo any dilution caused by those conversions if filed in the USCFC (where takings/illegal exaction claims would go) because that court can only award money damages, and has a minimal chance of resulting in any award for the plaintiffs anyway.