Replies to post #352685 on Fannie Mae-No Politics (FNMA)

[JosephS]

You don't understand. The Sr. Preferred can jump ahead of anything in the capital structure. THAT is the law... That is HERA according to these judges. Liquidation preference/scmeference.

Delaware/Virginia, whatever law doesn't matter. HERA rules all and the conservator can do as it pleases.

It is not subject to judicial review. period.

[cfljmljfl]

Yank , you are not that niave. Gov already have broken ever kind of law to reach this point. The law is immaterial now. The gov of Kentucky projecting blood going to be spelled if Beast wins. Folks should of known this way it ends.

[Zmarzz]

I found your post very informative about the capital structure, especially since it shows the order in which the debt holders are compensated.
Would you happen to know where FNMAS (series S preferred) is in this hierarchy?
Thanks!

[lookaheadfuture]

THEN come the MBS holders whose paper carries a guarantee from Fannie or Freddie. They rank below junior preferred shareholders because their "expectations" for payment are not secured by equity, just the assurances of the GSEs.

Why do you say that MBS are not secured by equity? MBS are asset backed securities.

In liquidation (which will never happen) preference is given to the risk averse.

So it should be Secured Creditors (includes MBS), Bonds, Senior Pref, Pref, Common.

However, this administration may very well do things differently since they can and no one will call them out on it.