Fannie Mae-No Politics (FNMA)

[JOoa0ky]

And somehow the Treasury will gracefully take a so called haircut to preserve the JPS and wipeout the common? You are deceived if you think somehow the JPS will be saved.

Of course.

Seniors get paid first.

Unfortunately as you said, LP is beyond the company's net worth... so what happens?
- The same thing that happens if you owe a loan shark money but you can't pay them back.
- They take your kids, take your wife, and your kidneys along with your liver.

In FnF's case, treasury takes 99.999999% of FnF's equity, thus rendering legacy commons to $0.00001/share.

So now, treasury effectively owns FnF but they still don't have the capital to exit conservatorship... so what happens?
- They start selling pieces of FnF off to new investors to raise capital.
- Yes, treasury is effectively taking a "graceful hair cut"

You know where else is a source of capital? Converting the JPS to commons.