Fannie Mae-No Politics (FNMA)

[familymang]

Rodney you are not understanding what Mnuchin/Calabria proposed/agreed on.

They were ok with EQUAL CONVERSION. Meaning both UST and JPS will have to take a haircut to full value in a conversion. Calabria even had a section discussing how he had to explain this dynamic to a congressman that the UST would not be able to recoup its full LP value in this scenario as both parties (UST and JPS) will take a haircut in equal conversion. The examples I provided you is exactly what UST/FHFA said was the only acceptable solution, equal conversion, where both UST LP and JPS LP take EQUAL conversion and therefore a EQUAL haircut. Which is the math i tried to highlight to you but you seemed to not grasp. This is also the only way JPS holders would be ok voluntarily accepting a conversion (which requires 2/3 of each series to agree). Or UST can go ahead and proceed w/o JPS holders and leave us in the capital structure as senior but UST was not on board with that.