Replies to post #605145 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

Unfortunately, this arrangement largely resembles the Accounting Treatment in the AIG rescue agreement. The Liquidation Preference was converted into common shares and sold under an IPO/SPO process recouped fully by Treasury.

Warrants were not the source of mass dilution for AIG shareholders. The warrants were actually retired by resale back to the company for a small stipend like $30 M. It was the IPO shares that led to a 1:20 reverse stock split to enable a relisting to NYSE.

I would not be welcome to any such redux with the GSEs, nor should any common equity loyalist. I might even refer to this as HanksGhost's Manuever since he crafted both these shady deals at the same time in 2008.