Replies to post #455760 on Fannie Mae-No Politics (FNMA)

[Latergater]

With the way Ackman’s fund is doing, he does not have the money to simply “throw a bone” to someone.

He did it because he can see the writing on the wall for huge dilution coming to common shares and maybe even the cancellation.

He will not be left holding the bag but some in here will be

[Commons_Cancelled]

Nobody knows for sure, so I wouldn't say that with such strong conviction. You see, the good thing about Preferreds is that we have a Contract that lays out the terms explicitly. Damages is surely a possibility since there is a clear Breach of Contract, which Lamberth will likely determine at some point early next year, possibly sooner.

Back-dividends can't be ruled out 100% either. The Contract states that if a dividend is given to anyone, that Preferreds shares also get their dividend. Remind me again who's been getting a dividend for the last ~6 years? Oh right, the "Sr. Preferred" which means the Jr. Preferreds should have also been given theirs. So, back-dividends isn't outside the realm of possibility since dividends were being paid, albeit to one class -- a class of shares that never existed before the Conservatorships.

As I started with, nobody knows for sure. But I can guarantee you the Jr. Preferred Shareholders will surely see something before the Commons see anything. Let's leave it at that.