Fannie Mae Preferred S (FNMAS)

[rosen62]

If things revert to the 2nd amendment we are back in the 10% dividend. Who knows what declaring it null may represent? Getting back all the DTAs? Will this mean some sort of recap.? Treasury being left with a bigger deficit that has already been discounted? Then, the companies will be further away from net zero!

Because of the implications it looks like a very complex issue.

Maybe a remedy somewhere in the middle will look acceptable to all parties. Like Treasury accepting all payments done as part of a pay off that will eliminate the Srs. once we are net zero. This could also quickly improve Fannie and Freddie's net worth position as all future earnings -after net zero- will be kept. If in addition Treasury amends the agreements again allowing recapitalization this could be the best outcome. I am dreaming lol.