Fannie Mae Preferred S (FNMAS)

[taintedfud]

as an ownership entity, they can only buy them at face price. if they take exception to us laws, they can do anything they damned well please. legally, corporations must buy at face, or they can make a "tender offer". people have an opportunity to accept or reject. that is on an indivdual basis. i think, on a tender offer, the offerer can place limits on minimum amounts and maximum amounts tendered. i have a couple stocks that have been TOed. will take up to XXX at 7 bucks a share. also have had bonds that have been called. own a GE bond that 3% of the bond, in $100,000 increments (face value) are called annually.

i have never heard of $25 face securities being bought off the market at 7% of face value.

i do think it would be wise of the federalies to put out a tender offer at 10 or 15% of face for all the preferred. for the price of a couple years divi, they could disappear the whole mess. i do not know if that kind of a tender when the divi is in default is legal(not that that should be a problem)