Fannie Mae Preferred S (FNMAS)

[Donotunderstand]

Rosen
I am long

With some of the T pfds as well

I bought FNMA pfds as it is the only PFD a bank can hold as more then 5% of their holdings

You read all types of bullsheest into my comments - all types of things I never said or even implied

now
To deny that FNMA would have gone belly without GOV money is nonsense

Their bonds - paper - which they had as well as assets - would soon have gone for 90 then 80 then 70 cents on the dollar making them both insolvent and illiquid

Now was 10% reasonable
Now was the motive to protect the USA and Banks and everyone before people starting dumbing bonds from every location
Sure

But that does not change the reality that FNMA

1. Was going 11 if not helpe
2. The GOV could have put FNMA into 11 and purposefully bought 79.9% and not 80% of 85% to avoid putting the debt on the USA books
3. By leaving 20% of equity (common) and prfds out there when they filled FNMA with cash - the GOV left windows and doors open for us pfd holders who saw a 25 cent price to recover if and when FNMA made money - a thought no one had - but it happened and now I say there is a 60% chance we get 50-100 cents on the dollar

But if you think FNMA are angels - fine
But if anyone believes the one REP minority report on the crisis that blames it all on FNAM - fine

Reality - FNMA was mismanaged - did not diversify their portfolio - and bought way too may crappy MBS issues from private lenders - etc.

Reality - of all the players FNMA was probably the least dirty of a very dirty crowd selling crap to investors (GS being the top of the list for they shorted what they sold)