Fannie Mae-No Politics (FNMA)

[dragon52]

regardless of whether they took the option to reverse split

it would not have made a difference. You see, once in conservatorship, it is treated like a company declaring BK Chap 11. It got delisted because of that. If they chose to do a reverse split, the Market Makers would have shorted it down anyway to the same place it had without a reverse. Sure they contemplated the move but, in reality knew that it would not make any difference or sense if the MM's would take it down.

The problem was more not having anything to sell off to downsize, but was stuck due to bad loans passed onto them. Why is the FHFA in court representing FNF now? Because of those bad loans and against the banks that have not repaid the monies borrowed as well.

Take a look at the past 4 Qtrs and how this is changing... and with word that 1st Qtr will also be profitable, this will not be kept down any longer. Show me any company that does over billions of dollars in profits and is trading UNDER $1. Please.

Point is. One cannot even compare AIG's situation and FNF's; totally different and under other than circumstances.