Fannie Mae-No Politics (FNMA)

[kthomp19]

So, you’re expecting the commons to be diluted to one trillion shares. Yet the JPS will get par and not be harmed.

It probably won't be quite that extreme; if Treasury converts the seniors to commons it will likely only happen if the juniors accept a conversion to common at a similar discount to par.

Who in his or her right mind would buy these shares?

People who want to make money and don't care about how prior shareholders were treated. Which is 99.9% of the market.

In addition, every single common share is owned by someone right now. If nobody in their right mind would buy commons after Treasury and the seniors are finally out of the way, who the hell would choose to own them today?!