Fannie Mae-No Politics (FNMA)

[Wise Man]

FNMFO is a CONVERTIBLE preferred stock, unlike all others Non-Convertible preferred stocks outstanding, according to its Prospectus (contract).

Although the entire prospectus uses as reference the concept of "Conversion Price" fixed at $94.31 at the time of issuance, I guess that this is a typo and what is fixed is the "Conversion Rate" into FNMA at 1,060.3329. Then, it states that it's adjusted for the common stocks outstanding at the time (anti-dilution), thinking of the resulting stake in Common Stock after the conversion.

This is why Glen Bradford talks about anti-dilution of his JPS to fool us. It relates to dilution in the resulting stake in Common Stock, not that they can't be diluted in price (losses) and, secondly, this term doesn't exist in a non-convertible JPS, because they have never had a conversion rate as reference and subsequent possible stake in Common Stock. So, they can never have anti-dilution adjustments.

The plotters want to, first of all, make up a conversion rate when there is none, and then, anti-dilution adjustment for themselves but referring to "anti-loss protection", after leaving the Fanniegate scandal in a case of "Equity restructuring", where no SPS has been repaid, more SPS are issued as if by magic every quarter and there is still the Warrant outstanding.
What I see is a negotiation of the hedge funds and bankers, holders of Non-Convertible JPS, with the U.S. Treasury that holds SPS and the Warrant, aiming to share the booty.
Both parties use the Judiciary to bless their unlawful actions.

Finally, there was another Convertible JPS called FANIP, that had MANDATORY conversion into FNMA at 1.8182 (Conversion Rate) on May 13, 2011, "subject to anti-dilution adjustments in certain circumstances", according to a Fannie Mae press release at the time, such as the Warrant, evidence that the Treasury determined in 2011, that the Warrant will NEVER be exercised, otherwise FANIP's conversion rate should have been adjusted.
I can't check out this "anti-dilution" provision because Fannie Mae has removed the prospectus from its website, but a comparison with FNMFO reveals what it is about.

Remember: Regulatory Risk and stock valuation. Non-negotiable.