Freddie Mac-No Politics (FMCC)

[trunkmonk]

Most negativity towards commons is more illegal activity. Which seems to not apply to preferred owners. They think par and divs is only thing.
From other board:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=170041062

Mr. Howard said
Quote: "First, Treasury and FHFA must agree to cancel the net worth sweep, and eliminate Treasury’s liquidation preference. Fannie and Freddie already have repaid their senior preferred stock, with 10 percent interest. And Treasury should not require that the companies’ senior preferred be converted to common. To do so would be to require them to repay their indebtedness to Treasury twice, which is unjustifiable, and blatantly unfair. Without the senior preferred, Fannie and Freddie’s combined March 31, 2022 capital shortfall of $441 billion would be cut to $248 billion, or by 44 percent." End of Quote.

https://howardonmortgagefinance.com/2022/05/23/a-capital-reality-check/

If the Treasury required the companies to convert the senior preferred to common stock the contract would have to be voided the way it is written.

FOURTH AMENDED AND RESTATED CERTIFICATE OF DESIGNATION OF TERMS OF VARIABLE LIQUIDATION PREFERENCE SENIOR PREFERRED STOCK, SERIES 2008-2

FACT: The Senior Preferred Stock cannot be converted to common stock.
No 6 and No 7

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.

No Preemptive Rights

No holder of the Senior Preferred Stock shall as such holder have any preemptive right to purchase or subscribe for any other shares, rights, options or other securities of any class of the Company which at any time may be sold or offered for sale by the Company.” End of Quote

https://www.fhfa.gov/Conservatorship/Documents/Senior-Preferred-Stock-Agree/FNM/SPSPA-amends/FNM-Fourth-Amended-Restated-Certificate-04-13-21.pdf