Replies to post #536624 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Nonconvertable...
This sounds like a roadblock.

It isn't. "Nonconvertible" can mean two things:

1) Cannot be converted by one party alone; both parties (company and shareholder) must agree.
2) Can never be converted no matter what happens.

#1 is correct and #2 isn't, but some like to conflate the two definitions for some reason.

Mark Calabria specifically mentioned the possibility of a junior-to-common conversion. He's not stupid. If it was either illegal or unworkable he wouldn't have said anything about it.