Fannie Mae-No Politics (FNMA)

[rosen62]

Obit, does the document clearly states that Jr. holders will have a choice whether to convert -and become owners of the NewCos- or maintain their holdings and be paid out dividends by the old Fannie and Freddie once all requirement for this to happen have been fulfilled? I mean a specific, clearly written formulation.

I also understood the "non-participating preferred shareholders" as you did but it was more of an inference. Could not find a direct reference to the split. If this interpretation is correct, the non-part will not be new owners and will eventually have to be redeemed at some point in the future once FF close their books.

Also, the deal on the table must specify the split and at least 2/3 of the holders (of various flavors) should agree to it (in addition to the main participants, Treasury and FHFA).

And do you understand from the document that dividends to old preferreds will apply immediately after a) Treasury gets those additional 2 bill, b) Treasury gets paid a reasonable return TBD? Would then the remaining Jrs. be next in line?