Fannie Mae-No Politics (FNMA)

[Commons_Cancelled]

It's CET1 rather than core, but point well taken.

Thank you. Yes, CET-1 was what I was looking for.

Not converting the juniors means $33B more in commons would have to be sold, involving its own dilution.

Exactly. Without a JPS to Common Conversion, Commons will be staring down an additional $33B in new shares.

And I can't for the life of me understand why anyone would say this isn't a bankruptcy. Calabria already said it is

Indeed. Calabria directly comparing the GSEs to Hertz stock should have set off everyone's alarm.

at least two massive restructurings will be needed before release: modifying Treasury's stake (to remove the seniors) and a capital raise (a recapitalization is a type of restructuring).

Agreed on both fronts. It's coming amigo