Fannie Mae-No Politics (FNMA)

[Ace Trader]

JPS, have the Gov by the Balls if they try anything less than Par !
Page 13 to page 14
https://www.cbo.gov/system/files/2020-08/56496-GSE.pdf
You know dam wel Ackman and Co have spent a ton on fighting in court and I bet you they an't ready to take a haircut. They will want PAR !! for JPS

Redemption of Shareholders’ Claims in CBO’s Model
CBO’s model incorporates the judgment that in scenarios in which the GSEs’ common-stock sale did not raise
enough funds to redeem the full face value of both the
senior preferred and junior preferred shares, the Treasury
would take a reduction (known as a haircut) in the value
of its senior preferred stake before requiring junior preferred shareholders to do so.30 That outcome would be
inconsistent with the priority of interest between junior
and senior preferred shares. But it recognizes that changing the GSEs’ commitments to junior preferred shareholders would be difficult outside a receivership scenario,
in which the Treasury, as owner of the senior preferred
shares, also owned the GSEs’ common stock (through its
warrants)
to allow the GSEs to retire their claims on the GSEs’
assets and income at less than the face value of their
shares in the lead-up to a sale of new common stock.
That refusal would reduce the value of the new common
shares, making recapitalization more difficult. Even
though the Treasury’s preferred shares have seniority over
the preconservatorship preferred shares owned by investors, the Treasury would have an incentive to make an
arrangement that took into account its ownership stake
in the GSEs’ common stock.