Fannie Mae-No Politics (FNMA)

[The Man With No Name]

Pretty damn simple. The company issues and sells new stock via a pre-arranged backstop to the banks and brokers leading the recap. Treasury receives cash instead of shares but new shares take the place of the SPS.

This is a conversion of the SPS to new shares....diluting legacy shareholders. Just because Treasury isn't getting the shares doesn't mean new shares can't be issued and a conversion can't take place.

And anything can be done with an amendment if they don't want to be cashed out.