Fannie Mae Preferred S (FNMAS)

[JosephS]

Chrisanj-

I don't think receivership is even a consideration due to the need for a solid MBS market. Geitner promised that the securities issued by fnf were good. r-ship would stop interest on the bonds and possibly put the whole market at risk.

The chinese and other foreign funds would pull out(is what the fear is)

They can't destroy the common and preferred w/o r-ship.

that is the conundrum.

r-ship will also ding the bonds and have them in flux for too long.

of course the gov't also said that the company was strong right before c-ship.

Just my opinion.