Fannie Mae Preferred S (FNMAS)

[Sam1212]

Reality is without GOV cash - FNMA would have had to go Ch 11 and kill equity 100%

Without govt. intervention, FNMA was trading closed at 7.04 on sept. 5, 2008 with all the risk of running out of cash which you mention prior to conservatorship. After intervention it closed at 0.74 on Sept. 8, 2008 the next day after intervention. So to claim that Govt rescued FNMA (as a privately owned company is false), they saved the housing market NOT fnma. May be it was needed in the light of public good but private shareholders need to be compensated for the harm done to them..