Fannie Mae-No Politics (FNMA)

[The Man With No Name]

When I heard Thompson speculate on the reason for increasing the liquidation preference on the SPS (for leverage and/or further diluting commons greater than 79.9%), it was like he was reading my mind. I’m sure you got a kick out of it too.

To respond to someone else’s previous comment about us all be being in the same boat…we aren’t. As Thompson said, conversion of the SPS dilutes commons, not JPS.

We are in 3 boats. The lead boat is Treasury and it’s the only boat with a steering wheel. The second boat in line are the JPS. If Treasury converts, then JPS is the lead boat. The commons are dragging up the rear in the third boat. 79.9% of their boat is occupied by Treasury and if Treasury so decides, they may take up more room up to 99+%.