Fannie Mae-No Politics (FNMA)

[Ace Trader]

Thanks for your value information of the law and proceedings. If what you posted here

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The senior preferreds essentially become super warrants to take >90% of the common instead of 80%. Like i explained in previous post, senior preferred LP = ~$290b, junior preferred LP = ~$30b, for a total LP of $320b. If the GSEs are only worth $250b (25b annual earnings x 10x p/e), in an EQUAL conversion, both senior preferred and junior preferred would take a ~20% haircut to PAR since $250b < $320b, and leaves little to no value for the common (and by extension the government warrants, which is irrelevant for them because the senior preferred conversion gave them >90% ownership of equity which is > than the warrants could have at 79.99%).
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turns out how the Gov wants to play it then a 20% haircut on JPS to Par is not bad !!! But commons will get killed in a conversion.

Still my biggest question is what would be the common share float after such a conversion?

Current common shares would be converted at what ratio ?

Was the SPSA 1 billion shares? or was that the warrants ? Just trying to figure out what the share count would be a share price based on Market Caps

That would also leave the door open to the companies offering NEW Preferred shares.