Replies to post #611688 on Fannie Mae-No Politics (FNMA)

[Commons_Cancelled]

so Calabria does not just say there won't be a windfall, he also explicitly says shareholders will be heavily diluted...

Yes indeed! These aren't the most friendly FNMA Facts, but it's important to note how Calabria basically delivered a double-whammy to Commons.

It was almost as if Calabria was trying to say, "Buy Jr. Preferreds, you'll do better."

[not one red cent ~NORC~]

Did anyone really expect Calabria to publicly state "Shareholders are going to make a lot of money" or "Dont buy a certain class of these stocks because the other ones are going to get the windfall".

[EternalPatience]

In that case why he has his own advisor, fa have their own fin advisor rfp, fre have put their own fin advisor rfp if he knows exactly what's thebsolution.. if it's such a simple one liner off the cuff remark has so much weightage., Then there were so many interviews in the past from the powers that be, who said fnma will be wiped out, this shd be shorted to what not... Too much weightage given.. let the courts rule on Seila and everything will change...

[Louie_Louie]

He never specified any exact shareholder also, which PREF SHAREHOLDERS seem to constantly overlook.

[AllRightWamu]

Potty:Extremely diluted in relation to what? If in the end, instead of 1.2 billion commons, there would be 6 billion commons?

6 billion would be a heavy dilution. So, if you look at the value of the fannie relative to the profit, in that case we would still be at 15-20 dollars a share for 6 billion shares...

What does heavy dilution mean in your eyes? At how many new commons is it extreme?