Fannie Mae-No Politics (FNMA)

[kthomp19]

Senior Preferred Stock cannot be converted to Common Stock or any class of Stock UNDER THE TERMS of THE AGREEMENT.

Nope, you're reading it wrong. Here's the relevant quote.

No Conversion or Exchange Rights

The holders of shares of the Senior Preferred Stock shall not have any right to convert such shares into or exchange such shares for any other class or series of stock or obligations of the Company.

The key word is "right". That only means Treasury cannot force a conversion to common without the consent of the company.

It does not mean that the seniors can never be converted to common no matter what. All it takes is for FHFA, as conservator and on behalf of FnF, to agree to conversion terms with Treasury.