Fannie Mae-No Politics (FNMA)

[The Man With No Name]

Says who? You? Legacy shareholders have no leverage. If the powers that be offered warrants, they would be so far out of the money they'd be worthless. NO new money will agree to be potentially diluted by old common holders. There will be a newco Enterprise Value marketed by Goldman Sachs and investors will demand a certain amount of equity for their investment.

Commons are at the bottom of the 'waterfall'. If JPS aren't made whole (or if they don't agree to take less than make whole), then commons won't get a damn thing.

The government has the seniors AND the warrants to just about make the numbers work out however in the hell they please. The JPS have contracts...commons don't. They must deal with JPS, commons not so much if any at all.