Fannie Mae-No Politics (FNMA)

[JOoa0ky]

The problem with your order of execution is that JPS are non-convertible.

The only way to get around it is by making an offer to the JPS to convert voluntarily (this would be similar to how CITI did it... some converted and some held out). Unfortunately, no one in their right mind would accept the conversion to get diluted by seniors.

I hope all of you guys realize the power dynamics in this recap scenario.
- It's not treasury who will get the most favorable terms.
- It's the new incoming capital that will get extra pepperoni on their slices.