Freddie Mac-No Politics (FMCC)

[prokopton]

I don't think the company is in receivership but it's in conservatorship. As long as the company is in convervatorship, common shareholders don't get paid dividends, only the preferred shareholders.

There are two types of preferred shares right now:

--those held by private investors (hedge funds), who want to convert their preferred shares to common shares.

--those held by the government. I think if all preferred shares were converted to common shares the government (tax payers) would own about 80% of the company (not sure the exact number but it's high).

The hedge funds want to privatize the company and take the preferred shares off the government. If that happens, then common shareholders get paid dividends.