Fannie Mae-No Politics (FNMA)

[Rodney5]

Anyone new to this board LuLeVan, the man with no name, JOoaoky and kthomp19… all are contemplating pushing for what’s described as a cram-down forever destroying the common shareholders.

Every time the common stock moves upward in price these people show up on this board bashing the Common Shareholders claiming that minimum if any value at all will remain for the shareholders upon exit of conservatorship.

These people should have some dignity stop with the restructuring theft and the need for third party capital, return the money confiscated by the Treasury and the companies will be fully capitalized. The shareholders have been abused by the government.

KT admitted it was stealing.

Kthomp Quote: "Yes, the companies were adequately capitalized when they were put into conservatorship. Shortly thereafter, when Lockhart stuffed FnF full of non-cash accounting losses, they went balance sheet insolvent. None of that has made a bit of difference in court so far." End of Quote

Note: "so far" Hello Barron we need you.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173554089

Transfer of Ownership Cram-Down

Explained,

Legacy Shareholders means, collectively, each person that owns common stock of the Company immediately prior to the closing of the Transaction (cram-down) which in no event shall include any of the Investors; or very few will remain afterwards maybe 1% or less.

A cram-down deal refers to a situation where an investor or creditor is forced into accepting undesirable terms in a transaction or bankruptcy proceedings.

In the case with Fannie Mae the Treasury's holding of senor preferred stock in the amount of $120.8 billion, with a liquidation preference of $199 billion.

If the Treasury converts this amount of SPS into common stock the Treasury in essence will own 99.9% of all the common stock outstanding. The number of shares outstanding depends on price per share at the time converted. The amount of shares outstanding after the cram-down does not matter at all, it's the percent ownership, a transfer of ownership from the legacy common shareholders to the Treasury. This transaction will cause the legacy common stock to vanish along with any short positions, naked short positions as well as any counterfeit common stock outstanding. Afterwards, the Treasury can do a reverse split reducing the amount in number of the new common stock outstanding to what ever amount desired.