Fannie Mae-No Politics (FNMA)

[kthomp19]

You miss the main point: your proposed restructuring would be ILLEGAL. 8 jurors in Judge Lamberth's court found NWS wasn't executed in good faith. Poof! There goes the Senior Preferred Shares.

This makes absolutely no logical sense. It's an ano-level word salad.

The jury verdict does not mean that any of the agreements in place, including the NWS, are illegal or unenforceable or moot or unwound or any of that.

You also missed the fact that even if the NWS were to be unwound, $187B of the liquidation preference of the seniors would still exist because that's where it stood the day before the NWS was signed.

The seniors also go "poof" in a conversion scenario, you might want to re-think your choice of words.

One more thing to keep in mind: according to Treasury, them writing down the seniors for nothing in return is what would be illegal.