Fannie Mae-No Politics (FNMA)

[tutt1126]

There is something to consider and ask ourselves of why paying dividend to common stock in utility model.

Although common stock is in a low class, the mass selloff upon relisting to NYSE CAN ALSO CRASH both FnF and the entire market just like in 2008.


Entire market can collapse in both ways if :

1. Mass selloff in primary mortgage market , common stockholders.
2. Mass selloff In secondary mortgage market, bondholders



For 15 years in conservatorship, do you think that all stockholders will continue to hold after relisting.?

No

That is why the utility with the rate of return in dividend for common stock is the best solution