Fannie Mae-No Politics (FNMA)

[Rodney5]

FOFreddie, it’s not “perhaps” FNMA will not need capital infusion it’s a fact FNMA will not need a capital infusion. And FMCC will not need a capital infusion by retaining earnings, the difference FMCC will take a longer period of time. My understanding is both companies can list onto the NYSE now while still under gov. control. If investors know the companies are destined to be released after meeting capital requirements and are listed on the NYSE why would shareholders care to dilute the ownership with new offerings? That makes no sense for the good of the companies, BUT you want to convert your shares to common stock. If you want the common so much sell the JPS Tuesday morning and buy the common.

As I said multiple times The JPS are non-cumulative, no reason for management to allot any money on behalf to the shareholders at this point in time to exit conservatorship and re-list on the NYSE. When management determines to reinstate dividend payments the companies can choose to sell into the open market new issues of cumulative preferred stock at a lower payout amount replacing the higher yield on the existing JPS and shareholders of the then old issue receive par.