Replies to post #608017 on Fannie Mae-No Politics (FNMA)

[nagoya1]

Ya sure.... Judge Sweeney says that gov acted like the mafia and you think it's ok to steal..Comparing FNMA's to others is a total joke.
FNMA

[YanksGhost]

I just don't buy into the all or nothing supremacy of either common or JPS shares. And while the examples you raised on other bailed out preferreds getting LP is truthful, AIG shareholders were diluted but not wiped out.

The similarities between AIG and the GSEs are elementally stunning in similarity. But there is one HUGE difference that reposes in the length of time spent in financial jail, and the amount of overpayment beyond bailout money paid in to the benefit of taxpayers. AIG's bailout inequity was basically only litigated by Hank Greenberg and was thrashed by the Court and dismissed due to the financial red blanket condition that would have doomed shareholders without the bailout. This is NOT replicated in the GSE's financial condition in 2008, and the legal matters remaining open raise this fact to a substantial level. There is equal or greater opprtunity for common shares, here, depending on how the legal circus plays out.

I see an agreement of settlement coming, and some room for optimism in both JPS and common encampments in the future.

JMO.

[whitecorona]

The scenarios of the GSE's and AIG situations are strikingly similar.
** WRONG, THEY BOTH APPLE and ORANGES... COMPLETELY NOT THE SAME


The government will get their pound of flesh from the common holders just like in AIG but the preferred will be paid in full just like the pre existing preferred from AIG, national city bank, Citi, Bear Stearns, Merril Lynch, Countrywide and all of the others that were merged and not liquidated. Even the preferred from Indymac got a payout from liquidation and the common did not.
** WRONG AGAIN, THESE AIG, CITI, THEY CUDNT PAID THEIR BAIL OUT.. FNF ARE IN SURPLUS, SOME OF LIKE COUNTRY AND BEAR ARE BANKRUPT AND BOUGHT. FNF ARE NOT ON THESE SITUATION AT ALL.


It is truly an uninformed position to assume that the common stocks will receive anything before the preferred holders are satisfied.
** 3RD STRIKE WRONG AGAIN AGAIN. JPS ARE NON CUMULATIVE, IF U THINK FROM LIQUIDATION MONEY THEN U ARE DREAMING BIG TIME AS ABOVE 2 STATEMENTS THAT YOU BASED ARE NOT HAPPENING. IF PAYMENT EVER MADE PROBABLY BECAUSE OF PAIN/SUFFERING OR RETURN EXCESS TO FNF AND BOD CAN DECIDE ONE BIG DIV BASED ON JPS OR COMMON, THEY WILL RECEIVE WHAT THEY ARE OBLIGATED.

The country is dependent on the GSE's to maintain stability in the housing sector and they will be around for a long long time.
** ONLY TRUTH YOU CAN TALK PROPERLY HERE. MAKING THEM BANKRUPT WILL PUT US CHAOS, DEBT BEING ADDED, CREDIT RATING DROPS, ETC,,ETC,,

[Guido2]

Yes, Shylock was entitled to the pound of flesh, but not a single drop of Antonio's blood. Shylock lost and so will the government.

The preferred will get their dividends restored once Fannie and Freddie are capitalized. They don't get commons. Ask Shylock.