Fannie Mae-No Politics (FNMA)

[Rodney5]

Quote: “Again, this only applies if FnF are put into receivership.” End of Quote

What are the specified conditions?

“Our regulator is authorized or required to place us into receivership under specified conditions, which would result in our liquidation.”

There is nothing keeping the Treasury from ending this conservatorship by placing the companies in receivership for the payment of the Liquidation Preference; and at the same time sell the companies in the open market by IPO. Your JPS and my Common become history. The Treasury's LP is more than the net worth of the business.

The Shareholders prayer of relief is for the Treasury to cancel the LP and declare the SPS paid in full.

Company’s financial statement

Risk Factors Summary
GSE and Conservatorship Risk

Quote: "Our business activities are significantly affected by the senior preferred stock purchase agreement. Our regulator is authorized or required to place us into receivership under specified conditions, which would result in our liquidation. Amounts recovered by our receiver may not be sufficient to pay claims outstanding against us, repay the liquidation preference of our preferred stock or to provide any proceeds to common shareholders." End of Quote Page 33

Link: https://www.fanniemae.com/media/46276/display

"In the event the assets legally available for distribution to stockholders are insufficient to pay the liquidation preference of all Preferred Stock in full, the assets available for distribution will be divided among all holders of Preferred Stock on a pro rata basis, based on the value of the liquidation preference of each series of Preferred Stock." Page 5

Link: https://www.sec.gov/Archives/edgar/data/310522/000031052220000121/descriptionofsecuritie.htm