Fannie Mae-No Politics (FNMA)

[DaJester]

"A senior and junior-to-common conversion almost happening is nothing like the lottery. It shows the mindset of the DOJ (that they view Treasury writing off the seniors as illegal) and is direct evidence that informs future expectations."

"1) Treasury's 92% stake in AIG wasn't a problem. They signed an agreement to vote their shares in proportion to all other shareholders' votes, effectively eliminating their voting power."

You really don't know how over-indexed you are on these two points do you? Just because a solution was considered by Treasury and NOT executed does not make it more likely to be the correct solution in the future. Things change. And just because something was executed with AIG does not obligate Treasury to replicate that agreement with the GSEs or any other situation in the future. Situations are unique.

I'll say it again for those in the back. Things change. Situations are unique. Plan accordingly.