Fannie Mae-No Politics (FNMA)

[bradford86]

Yes. The companies are armed and ready and chomping at the bit to be able to exit conservatorship. Dont forget that their leadership team can get paid more outside of conservatorship. Incentives are aligned. Fhfa has been working hard since 2019 to prepare them to exit conservatorship. So that is 3+years of preparing them and getting them ready.

But spspa liq pref plus warrants prevent existing common shares from participating in any upside because the spspa will have to take a haircut. Commons have no dilution protection which is relevant in a restructuring and so they are technically worthless.

Jps — now that is security outside of receivership those rights get made whole by doing nothing.