Fannie Mae (FNMA)

[familymang]

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

A simple way of thinking about it is if the snr pfd and jr pfd convert to own 99.9% of the common equity, which is worth $250b at 10x p/e, the GSEs will need to issue ~500b common shares (at current common prices of ~50c / shr) to the snr pfd and jr pfd shareholders. So yea current common will still exist, but they will own ~2m shares of ~500b and have very little value. At that point they can do a reverse stock split to get the share price back to a normal level (for example they can do a 100:1 reverse stock split to get the share price back to ~$50, and reducing the share count down to 5b).

Current common shares would be converted at what ratio ?

They don't get converted, they continue to exist, but they now own ~2m shares of 500b as described above, which is worth practically nothing/pennies.