Fannie Mae-No Politics (FNMA)

[Rodney5]

Quote: “ Mnuchin at Treasury didn't want to convert SPS to common equity because it would put UST behind Jr. Preferred shareholders in the capital stack. In other words, he would have converted the SPS to "normal" preferred shares that were "more senior" to the existing Jr. Preferreds (or there would have been forced conversion of Jr. Preferred to common equity).” End of Quote

Do not be deceived about the order of the capital stack. There is a very likely possibility the JPS will be wiped out.

The Treasury can choose to procrastinate to the point everyone gets wiped out. It’s been 15 years. And the LP continues to grow.

The JPS Shareholders are not protected with a kind of special immunity based on the order of the capital stack.