Replies to post #349675 on Fannie Mae-No Politics (FNMA)

[rekcusdo]

Agree with you donotunderstand,

Depending on the ruling, it is possible money could go back to F/F depending on what the ruling is...but it is impossible that a ruling would require dividend payments to ANYONE let alone to a specific class...dividends are discretionary, and if they are paid, it MUST be in order with SP first, then JP then common.

And I dont know what he's talking about contempt. Theres no such thing as automatic contempt. Contempt is a discretionary order by a judge. Theres no such thing as "that would be contempt automatically".

[chessmaster315]

The class of stock for the fannie preferreds are "NON" cumulative preferred.
In regards to fannie, there are no "cumulative preferreds". Thus, the preferreds wont be getting a cumulative dividend, the preferreds are only entilted to the CURRENT dividend ahead of the commons.
Remember, also, preferreds are "non voting" shares. Thus the "voting" common shareholders can/will elect board members who serve "common" shareholder interests over those board members who represent the "preferred" shareholder interests.