Fannie Mae (FNMA)

[bradford86]

I do not see it that way.

The admin can move forward with admin reform if it wants to, but for it to have teeth, Fannie and Freddie would need to be able to raise capital as part of it (sell stock).

I think there are two paths forward on the NWS, either it reversed and writes down the spspa or it sticks and the SPSPA is converted to common.

In both of those outcomes, JPS can be made whole and their lawsuits would go away if dividends resume. That is my view.

Commons? To have any material upside the spspa liq pref would need to be written down as part of settling the litigation.

Preferred are made whole in any recapitalization scenario in my book and that is the outcome I believe in.

Admin drives this boat. They have complete control. They are not at the mercy of the court, but their options are limited to what capital markets will support and they can finish this whenever they want.