Fannie Mae-No Politics (FNMA)

[LuLeVan]

The government would love to screw both commons and JPS. But it's much harder with the JPS because they have explicit contractual rights. There is no way to dilute JPS by offering more preferred shares. So the government grabs what it can, which is the commons. Commons can easily be diluted down to single cents (by SPS to common conversion). The more the commons are diluted, the more the government "earns" on its "investment" on recap/release.

None of these guys trashing commons ever explains why government would screw one shareholder, yet reward the other?...It's not much harder at all for the government to screw the whole lot of us...