Freddie Mac (FMCC)

[Ace Trader]

The ONLY way jps are toast is in a BK chapter 7 ! Chapter 11 which is the normal means bond holders are first in line and common shareholders are last and normally get wiped out ! The legal JPS contracts state NO conversion to common!

However the Gov made up this foney Conservatorship and stole shareholders money along with the companies. I'm sure they could come up with a way to steel the companies and wipe out all shareholders and create a new stock offering and new company all rolled into ONE! Only problem with that is not many would buy into it as the gov could do it again to shareholders and I'm sure many hedge funds and banks etc have made that aware of so where does that leave the Gov in steeling as much as they can before handing them back ??

My 2 cent worth is:

NEW STOCK TEIR for Fannie & Freddie
1, Gov keeps the warrants and receives a quarterly dividend on total income per quarter. (10%) or whatever.

2, Gov converts SPSA uses those for a stock offering as a (special preferred stock with NO voting rights) to banks, hedge funds and the mortgage market lenders in a system that is controlled by the FHFA.


3, Junior preferred stock stays as is.

4, Common stock stays as is.

The Gov could keep things how they are and the ( Special preferred shares) and the govs warrants could be the only ones getting dividends.
The Dividend pool payout will be less for both JPS and common shareholders if this happened or none.