Replies to post #540537 on Fannie Mae-No Politics (FNMA)

[Doc.007]

The Gov MC already mentioned, The SPS Seen As Paid To Possibly Get Cancelled !

So What For That Continue Prefs BS Talking ?

[HoldenWalker99]

They can convert ~$150 billion (~79.9%) and sell it... then convert remaining ~$50 billion (~20.1%) and sell it.

About as challenging of a problem as the $4 listing requirement for NYSE.

Both very easy fixes to simple problems.

>>Treasury converting the seniors to commons

Would cause the Gov ownership to go above 80%.

Thus unlikely to happen.

[Donotunderstand]

yes
and
?
depends on warrants ?

depends on price per share ?

at the moment - while warrants LOOM - the GOV owns zero

[kthomp19]

Would cause the Gov ownership to go above 80%.

Thus unlikely to happen.

As RuudG said, Treasury can exercise and sell the shares piecemeal while avoiding 80% at every step. With AIG, Treasury ended up with a 92% stake so it's not impossible.