Replies to post #579803 on Fannie Mae-No Politics (FNMA)

[Brooge warrants cancelled]

Can anyone repost exactly what phillips said?

[kthomp19]

to the contrary, i said that they can legally convert with 2/3 jps approval

Is any conversion ratio legal?

It's also possible that FHFA directs FnF to offer a voluntary conversion at a specified ratio, as with Citi. This doesn't require any voting by pref shareholders.

i only noted that IF a potential plaintiff feels the conversion terms violate some statute/law, then a law suit could arise

Sure, but that's a tautology. Without any knowledge of what law a conversion would break, how can any lawsuit be anticipated?

btw, IF a conversion happens, I think it will happen on terms mutually agreeable to ALL parties

This "ALL" certainly won't include current common shareholders because they won't have a say. It will be the pref shareholders negotiating with Calabria. Possible exceptions to the above are Bill Ackman and CapWealth, who between them own 20% of the commons but are still more heavily weighted to the prefs (meaning that a generous enough conversion makes them enough money to eat a loss on the commons).