Fannie Mae-No Politics (FNMA)

[FFFacts]

What entities will inherit those?

Again it does not matter they can be transferred to newco or the companies can stay the same and restructure using the same entities. Congress can issue charters.

And trying to transfer the assets and liabilities without the charters would set off a nuclear bomb in the housing finance industry; who would do business with these new companies without those charters?

Nobody said new companies would be without charters.

My view right now is that the only feasible path forward with a restructuring, whether it's handled like a bankruptcy or not, is either to have Fannie and Freddie continue to exist in their current corporate forms with charters intact, or create newcos and transfer the charters to them. In the former case junior pref holders retain their current contractual rights, and I don't see any path to the latter outside of receivership. I am trying to prove or disprove this sentiment.

That is false. A restructuring in a bankruptcy can absolutely impair jps contractual rights. Treasury owns all the liquidation preference as it stands. They don't have to give you anything.

. Do you know what percentages the Preferred and Common classes ended up with?

Don't remember 50/50 or 30/70. Either way the absolute priority rule was not absolute. And despite preferred stock being impaired common shares were also given a stake in newco.

Why would they choose to vote against it?

They wouldn't because the alternative is to challenge the bankruptcy and the numbers wouldn't work. Just like in this case with treasury owning the entire liquidation preference. Way to survive would be to gift preferred and common an ownership interest. So as you can see your theory of jps being made whole before commons see a cent is false.