Replies to post #413852 on Fannie Mae-No Politics (FNMA)

[Hey_Its_That_Guy]

Good analysis. However, most company liquidation leave nothing left. Best case pennies on the dollar.

Only way to liquidate is to sell entire MBS portfolio. That's what like a trillion dollars worth. So the MBSs would either need to be sold to every private bank or the Treasury.

There is another way out. Remove the excess paid to Treasury. Pay that to preferds then use the billions made each quarter to build up the capital needed.

What ya think?

Just my two cents probably over simplified it . It is late though so I'm going to bed.

[Cubshawk]

If the plan is to merge them - why would there be a liquidation? In most mergers stock is issued to purchase the assets of the other entity. There is no liquidation.

Zaadx:
Exactly. Fannie and Freddie will be liquidated. Leftover assets will go to preferred shareholders..