Fannie Mae Preferred S (FNMAS)

[rosen62]

20c I am curious then... wouldn't shareholder's equity equal zero mean that the companies have been de facto nationalized? By receivership I mean the practical fact that they will be brought under the umbrella of the government 100%. That would mean that the wind down is simply wiping out shareholders, what is left of their equity. Today, it's a 20.1% of 3 billion. In five years it will be 20.1% of nothing.

Companies can't retain earnings. So they not only can't increase their net worth but instead are being artificially mandated to shrink it!

I understand that earnings, cash flows and market cap are all doing fine. It's just that in five years all of that will be theirs. It's like accounting magic. Black magic. I hope Mel Watt reverses the disconnect. PSPAs have determined certain values for the companies. The market doesn't want to hear it.

Gentlemen, there is an ongoing wind down here. It started with the 3rd amendment. But it is so slow that we don't realize it.