Replies to post #452398 on Fannie Mae-No Politics (FNMA)

[Cubshawk]

Commons_Cancelled: If not, then the only GSEs I see are ones with entirely new shareholders (ie: not current Common or Preferred holders).

Can you explain what advantage is really gained by zeroing out current shareholders? Especially in a scenario where they own only 20% of the companies (after warrants issued). That amount of money is a pittance overall.

And thus - what specific reason makes it worth for the government to cancel shareholders - especially at the exact same time they would be looking to raise capital/bring in new money? The chilling effect of destroying current shareholders seems to be worth at least 20% - not to mention the likely litigation that will ensue based on the cancellation.