Fannie Mae Preferred S (FNMAS)

[rosen62]

This is consistent with Millstein's plan.

In fact, on December's interview he specifically said that given the current trend of nationalizing FF the biggest selling point that could influence Congress to allow for a recap/AIGexit endgame was to show them how this scheme could help budget issues. So he assumed a recap/exit => budget aid would be "an offer they could not refuse".

As a side note.. he recently said that in this last scenario the fate of the Jrs. was more uncertain compared to a full blown liquidation of the GSEs by which -he believes- Jrs. will be made whole.