Fannie Mae Preferred S (FNMAS)

[etzetrade]

Of course buying gse. Regardless whatever you guys discussed in Lehnq board, Lehman basically has no money. It does not matter Lehman is in Chapter 11 or Chapter 11 liquidation.

Assuming someone likes to have Lehman's NOLs, seniors will share the large chunk and leave CTs, preferrds and common nothing comparing to gse.

I believe F&F will be survival because gov could follow the same cases as in GM and AIG. If we are lucky, as AIG subordinated bond, we get 100% recovery. If not, as GM, we get 10% of new company, probably equal to $10.00/share.

Preferrds here will have another dump to around $3.50/share. Then, it's time to get in.

GLTA