Fannie Mae-No Politics (FNMA)

[kthomp19]

What if by listing on NYSE and announcing removal from conservatorship shares hit $30+ and instead of warrant conversion they cancel those and convert senior preferreds? That would involve less dilution if I did the math right.

That's assuming that a senior conversion would occur at prevailing market prices. There is no reason for Treasury to allow those prices to affect the percentage of the equity they get.

If they ask for a conversion of their $340+B in LP to commons at $30 per share, or $20, or $10, or $5, or $1, or $0.25, or $0.05, FHFA has no reason to say no to any of those options because neither FHFA nor FnF have a fiduciary duty to shareholders.