Fannie Mae-No Politics (FNMA)

[SREZ]

Kthomp19,
Like the way you think....
If Mnuchin (as he cites) was against a write-down (or write-off) of the SPS due to potential legal &/or political fallout issues, what IYO WILL Ultimately happen with the SPS + the large (& growing) value of the Liquidation Preference (LP)? Vis-a-vis the JPS?
Mnuchin didn't want the JPS to be structurally Senior to the SPS which would iccur withthe write-off or conversion to Equity/Commons, so will the SPS + LP be written down on a pari-passu basis with the JPS (which I believe Mnuchin was proposing)? Keep the SPS, but write-down the LP? How do the JPS obtain 50, 60, 70-90% of par in such a scenario?
TIA, SREZ