Replies to post #589887 on Fannie Mae-No Politics (FNMA)

[Possum336]

You are correct in that retained earnings are equity related but the Preferred shares are considered paid in capital and there can be no retained earnings until those dividends are paid and the value is realized I do not need a bond board. I am fully versed in the classes of securities and know how the recapitalization process works. That being said, There will be plenty of time to liquidate the preferred holdings to buy common for growth if that is what one wants to do, but it does not change the security hierarchy or the order in which funds will re recovered. The preferred will have to be placated before the common even gets a sniff of green. Sorry if that does not match the board attitude but it none the less correct. Commons recover last That is just the way it is. Look for the reverse split first and then the government will sell its shares when that is completed many common holders that have been in the stock for a long time will sell their stake, take their profit or loss, and go home. There will be ample opportunity to buy equity at a fair price