Fannie Mae-No Politics (FNMA)

[Louie_Louie]

The reality is upon any type of release (even consent decree) commons are the play that 99% of retail investors will flock immediately, even though no dividends. Prefs know this and are beating a drum to try and scare the commons investors who realize this simplistic logic. Prefs will also build in price eventually, but that price will be capped because the majority who buy prefs do so for dividends. At release, neither commons or prefs will get dividends for quite a long while, I think, therefore the release price appreciation will be on commons side, until that dividend is reinstated. If commons appreciation grows, so does capital, if capital grows, less need for any raise and possibly some of the jps classes (maybe high coupon one's get bought, closed out?). The folks advocating an IPO or any type of capital raise right out of the gate are not factoring in that both FHFA and treasury are not going to release without feeling adequately about the capital, so any additional capital, as said many times before, will be the reponsibilty of the companies, and absolutely NO, the courts will not force any share conversions or exchanges or otherwise, that would be suicidal for the courts to attempt something far outside of their realm. The courts will only look at back dividends in my opinion, and jps are not entitled to any by their contract/prospectus (contract claims are now even in question). They are also non exchangeable for other shares, so how would courts try to force that seeing as government controls 80% of everything? Jps claim a vote can be taken....well good luck with that gigantic 20% voting super majority.

Be patient commons. Jps need to be even more patient. Best of luck to us all.