Replies to post #415062 on Fannie Mae-No Politics (FNMA)

[rosen62]

Did you get to the part that says a 4th amendment to restore the original agreement would leave an outstanding balance of Sr. preferred shares at 6.3 billion? Which could later disappear if equitisized? Where would the market determine the new share price for the Jrs to be?

I will give 3 choices for the $25s:

a) $23.50
b) $24.50
c) $25

[Donotunderstand]

I spoke without reading

Seems the proposal treats preferred exactly how I have described 10 times --- as converted to common as "common" (price to price determines ratio not the stated value)

so I agree but have not read yet

[HoldenWalker99]

Par if PPS estimates accurate.

If not, less/more than par.

See page 37.