Fannie Mae-No Politics (FNMA)

[familymang]

If your statement holds true seems the Treasury will not convert the SPS to common placing their self behind the JPS in the capital stack?

My statement simply says the government cant force the JPS to convert to common without their 2/3 approval. That doesnt in anyway preclude the government from converting its SPS to common if it chooses to do so. But I think what happens is UST tells JPS, we convert together, which Calabrias book claims both FHFA and UST were ok with (not only ok with, they saw it as the only acceptable solution). So both UST and JPS get equal recovery via common conversion as explained by Calabria which isnt bad for JPS.