Fannie Mae (FNMA)

[Donotunderstand]

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How does the GOV lose money with a cramdown --- if that is a conversion of their SP as measured by LP ----- into common ? They will have 90% of the equity of the new company when they issue stock at say $40 a share

Now - if you mean by cramdown - going into 11 type stuff ---- then yes - they might well wipe out their own SR PFD equity ---- but that is receivership not dilution of current common with them owning 90% or 80% of it all (from our 20%)

Did I understand??