Fannie Mae-No Politics (FNMA)

[familymang]

You misunderstood, Calabria's book discussed this, he stated Treasury's solution was that the the Jr preferreds and senior preferreds would convert equally at the same time, making them equal securities in a conversion, so essentially the Jr preferreds recover the same % that the senior preferreds end up recovering. While the common shareholders would be diluted by both jr and snr pfds.