Fannie Mae-No Politics (FNMA)

[The Man With No Name]

5 to 6% of the final market cap (about $220 billion according to Tim Howard) would equate to less than $10 per JPS, well below par (mostly $25). Further, you write that the commons will receive a few cents (0.1%).

This contradicts what Kthomp19 has repeatedly written here. He wrote (quoting from memory): If the commons receive even one cent, the JPS will be paid out at par (i.e. $25) because of their seniority in the capital stack.

Who is wrong here?

Possibly both of us or he could be right or I could be right. It just depends on what avenue is taken.

In theory he's correct and I don't disagree. In reality though, my guess is JPS will be offered a haircut/conversion/warrants...some combination thereof. If 2/3 of JPS holders agree, it's a done deal.

Commons at .1% could easily be .01% or .001%. It just depends on what kind of gift they are given.