Replies to post #451067 on Fannie Mae-No Politics (FNMA)

[betahighlander]

Agree whipstick
real people own have owned this stock.
TBTF bastards are always painting us as hedge funds.

[betahighlander]

i have a solution that no one seems to consider.
With the idea that New Investors need to be safe entering this space.

GSE could issue. Cumulative PFD stock to raise money with a PIK or paid in kind dividend if the reserves are not enough.
GSE are successful and will continue to be successful. This option would make it safe for Big money to buy.
These would also be callable/redemable so the GSE could pay them off once reserves are in excess of requirments.
This is safe for new money/ invbestmemt grade. has a return
Is this dilutive- Possibly yes. however a 3-4% stock dividend is NOT that dilutive. and the company Captital structure is safe. And if a little dilutive so what. Stock always survives. NO donuts. and the ability to buy back the pfds is always there when good times return.
Safe for investors, safe for stockholders, safe for RE Markets. Stable.

But hey what do i know

Keep in mind the conservator could have issued stock early on and the NWS would never had been necessary. NEVER.

[kthomp19]

IF I'm an investor, and I look at how the prior investors were treated... especially the commons... why would I ever commit a single dollar that way?

Investors who bought when? Ones who bought before conservatorship should have been wiped out the way other shareholders of bailed-out companies were, and ones who bought after would get around $11 per share which would be a gain of at least 100%, as much as 4300% (cost basis of $0.25). I can't characterize either of those as mistreatment.

Keeping the companies in conservatorship this long, and the NWS itself, are clearly harmful to shareholders. But those are also things that have already happened. If the mere occurrence of those is enough to permanently keep prospective investors away then we will never see a recap.

The gov't needs to cut a check to the investors and apologize for it's actions.

Cutting a check won't be necessary. Implementing a plan towards recap and release, like Moelis does, will raise share prices enough that current shareholders will make money without the government having to pay out a dime.

Real people died poor because of this

Anyone who got completely wiped out as a result of owning shares in FnF succumbed to excessive portfolio concentration. No investment is perfectly safe.