Replies to post #439438 on Fannie Mae-No Politics (FNMA)

[JosephS]

Incorrect. Ultimately, contracts will likely get the shares redemption value unless the company is put into rship.


Common may also get "redemption value" if the MBA plan is adopted in congress somehow. MBA plan is an rship wipeout.


One distinction between common and pref is implied variable contract vs fixed contract.

They will not be able to raise capital in the open mkt without dealing with pref shareholders first.

Not a recco

[not one red cent ~NORC~]

Which preferreds? They aren't all the same and some aren't even available to Joe Public.

People seem to overlook this and have been for a few years.

[bradford86]

no, it doesnt.