Fannie Mae-No Politics (FNMA)

[The Man With No Name]

Treasury can't be forced to give up the seniors by a court, so if they truly want to maximize their total return they will convert the seniors to commons, thereby gaining a stake much greater than 79.9%.

Treasury can easily structure the deal to avoid ever owning 80% (or even ever owning 50%) to avoid potential balance sheet consolidation and/or majority ownership issues.

And that is likely what will happen. Dilution into oblivion and then a reverse split to address majority ownership issues/new money common ownership upon recap.