Fannie Mae (FNMA)

[kthomp19]

I've been doing more research into other deals government did with Citi and AIG and yikes shareholders holding before TARP got wrecked on those.

Agreed. And FnF common shareholders are in a much worse position than those of Citi or AIG because FHFA controls the boards of directors during conservatorship, and several judges have ruled that FHFA has no fiduciary duty to shareholders.

Looks like AIG forced conversion of preferred shareholders and diluted the hell out of their common stock?

The conversion wasn't forced (it was offered by the companies and accepted by the preferred shareholders), but the rest is correct. You can see AIG's common price chart, along with a very similar one for FnF, in this post.

I think we are all hoping for a deal better than AIG's deal right?

"Hoping" is the correct word to use. None of us have any power to affect what FHFA and Treasury end up doing. There are also many more parallels between AIG and FnF than some care to admit.