Replies to post #568777 on Fannie Mae-No Politics (FNMA)

[etzetrade]

Does "non-cumulative" have time limitation of 5 years?

[Saywhat79]

They can't convert coz it's against sound and solvent if dilute when you don't have enough capital. Probably when the companies are out of c-ship and have enough capital buffer regards to capital rule set by tsy then fnf can issue more share or new pref or bonds to buy back pref at par. No conversion in my opinion.

[trunkmonk]

The conversion is in the minds of few, very few who don’t understand what is really going on.

[stockprofitter]

BOD can also issue a new P series security attached with a 6-8% coupon and pay off all remaining outstanding P shares at negotiated number. Makes the most sense as it does not affect capital structure with respect to the Common Voting Shares.

[JosephS]

Oh, a settlement agreement is coming. One thing to remember is that the NWS stoppage was not granted retroactively, yet. It may, it may not. An SPS conversion might be in the best interests of the government because their stated goal is risk mitigation and management. They have stated that they don't want to be on the hook.

SPS conversion of 190 billion dollars to common stock ought to do it. Give the 130 billion in dividends back and cxl those pesky warrants.

Yep. Possible per Gaby. While I hope common shares get their 10-12 payday, it ain't guaranteed.

Not a recco