Replies to post #604638 on Fannie Mae-No Politics (FNMA)

[mrfence]

The BOD...

Maybe the BOD would also establish a Special Committee to represent the interests of common shareholders?

...works for the owners $FMCC~ $FMNA~ if that tells yah anything. Oh and any changes to the capital structure have be approved by a quorum of common shareholders. That's a majority vote :-D

Also with regards to relisting...

KEY TAKEAWAYS
With relisting, a company's shares are made available again on a public market after a period of having been unavailable publicly, due to having been pulled from that market.
Usually, a relisted company is one that was pulled from a public market due to bankruptcy, failing to fulfill an exchange's requirements, or in some cases, voluntarily, by the company.
Relisted companies are often met with wariness by investors, who perceive the shares as still being tainted by the company's previous issues; however, there are instances when relisted shares are embraced by buyers.
A company subject to delisting for failing to meet an exchange's requirements will typically have 30 days to resolve the issues, which could include falling below the minimum share price or failing to pay listing fees.

https://www.investopedia.com/terms/r/relisted.asp

Also... NYSE to kill sub-penny rule, relist stocks
https://www.reuters.com/article/businesspro-us-nyse/nyse-to-kill-sub-penny-rule-relist-stocks-idUSTRE4AD63P20081114

Might want to ask posters that give real answers to your questions moving forward ;-)

[kthomp19]

Do you think FNMA or FMCC BOD would authorize a listing or a potential reverse split without the advice of a financial advisor?

No, because the reverse split will happen before the capital raise. The capital raise, in turn, will happen before FnF are released. Therefore it will be FHFA as conservator that authorizes the reverse split. The boards will have no say in the matter.

FnF's boards will have no real power until they hit "undercapitalized", which won't happen until they have enough core capital to meet Calabria's standard (likely to be over $100B). Counting on FnF's boards to protect the common share price is lunacy. They won't have any power until all the dilution has already occurred.

Doesnt there have to be some rational basis about what is best for the capital raise?

Sure, but it has little if anything to do with FnF's boards. This ball is squarely in Calabria's court.

Maybe the BOD would also establish a Special Committee to represent the interests of common shareholders?

Before release this would be useless because the boards have no power while FnF are in conservatorship. And after release the wave of dilution will have already happened, so it would be too late for this putative Special Committee to matter.

Again, don't count on the boards to protect common shareholders' interests. The boards will not regain their power and fiduciary duty to shareholders until well after all the dilution happens.

When do you think financial advisors will be selected - before or after the capital requirements ? Before of after the SCOTUS opinion on Seila?

I don't think any ordering of these events makes a difference. I could speculate, but it would be little more than a guess and wouldn't have any bearing on things anyway. I expect all three of these things to happen within a month of two or each other, though.

[mrfence]

Yah never mind the fact that Calabria said it will be up to the GSEs to raise their own capital under consent decree post C-ship because he's not allowed to change their SS under C-ship or that would have already happened a decade ago. ;-) :-D

PS... that's why Squidmore hired financial adviser for the FHFA to help them set the capital rule and told the GSEs to hire their own financial adviser to plan the best way to raise needed capital if any is actually needed to meet the rule