Replies to post #352904 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

Frequently they split between types of equity?

Nope

the line with massively thick ink is debt v equity

Frankly of about 15 bankruptcies I have seen or been in (K mart - GM - others) I have never seen a preferred v equity split

note - I am not talking about debt like TRUST preferred stock which none of F and F are

Those preferred shares were viewed as quasi debt and no one knew for sure -- but in 2009 or so at CITI - when the TARP was in - normal preferred and common were treated one way (equity style but I forget the offer) and debt and Trust preferred were treated a different way

sorry - but while I agree that in a liquidation if the money gets past debt it goes to preferred first up to PAR before a dime gets to common --- but not in a case where equity is tossed to the side -- in those cases it is not likely that preferred stock which is equity will hold any debt like position

all IMO and absolutely look at GM (or CITI) for GOV related actions