Fannie Mae-No Politics (FNMA)

[kthomp19]

From what I understand they are involved with like 60% of bank mergers so they aren't exactly huffing gasoline.

In that case, what they have to say about their common price target is worth paying attention to:

"Without the Treasury making a concession (either a write-down or a conversion to common) of its senior preferred position, the current shareholders will have no value," KBW said. "And even with a conversion to common, which we think is the most likely scenario, the common shares are likely to be diluted down to close to zero."

The preferred shares might have some value, but that is dependent on how the government restructures Fannie and Freddie, the report continued.