Fannie Mae-No Politics (FNMA)

[The Man With No Name]

""Charity" is absolutely the right word to use. Every dollar that legacy common shareholders end up with as the result of a senior pref writedown could remain with Treasury if they choose the convert the seniors instead. Placement in the capital structure matters."

^^^^^^ This is absolutely correct.

So the inverse is also true. Every dollar that is taken from the common shareholders as the result of the senior preferred write-UP, could remain with Common shareholders if they chose to stop stealing the equity.

^^^^^^ This is emotion talking. The inverse is not true. Emotion doesn't not have priority over senior equity in the capital structure. Legacy commons have no rights what-so-ever, other than retaining your shares, when it comes to the recapitalization that necessarily happens prior to the end of conservatorship.

You can be diluted 1,000,000 to 1. No lawsuit can stop it.....you can't even get a temporary restraining order to prevent it. You are along for the ride and whatever value you receive is residual charity.