Fannie Mae Preferred S (FNMAS)

[loobeyondbm]

Maxine Waters' Bill Summary

? Provides for a 5-year transition between the government-sponsored enterprises
(GSEs) and the new Issuer, with Treasury authorized to extend by one year if
necessary.


? Provides for a “waterfall” for distribution of earnings in conservatorship to:
Treasury Senior Preferred shares, any reserve funds needed in connection with
wind-down of the GSEs, outstanding Affordable Housing Fund payments, and
existing preferred and common shareholders, including Treasury as holder of
warrants.

? Provides authority for transfer of GSEs assets to the new Issuer and permits
Treasury to take new preferred shares in the new Issuers to assist in starting it up.


So it could be a tender offer to juniors and commoners from the government and then the government will transfer its shares into the new entity as start up fund.

http://democrats.financialservices.house.gov/FinancialSvcsDemMedia/file/003%20Maxine%20Waters%20Legislation/GSE%20Bill/Waters%20Housing%20Finance%20Reform%20Bill%20-%20Detailed%201-pager.pdf