Replies to post #628898 on Fannie Mae-No Politics (FNMA)

[401kobessive]

Bingo. Folks forget...
This is a corporation that is in conservatorship.
Delaware state law will dictate the share structure after release.

Everything else is noise.

[Robert from yahoo bd]

Thanks RPS, I think we need some clarity on the recommendations from the FA's, cap ratio, Collins disposition, before we start spending time doing what ifs on whether or not jps is a superior or inferior investment proposition than common.

Although I do applaud you and other members of the board in trying to weed through the thatch of numerous variables that should eventually be resolved!

Remember, IF UST and MC are really serious about R,R,R, they have tons of options available, to get it done!

I thought Judge Steele had a great argument in his Delaware case, do you remember why the court ruled against him?

[bradford86]

in 2008 the senior preferred stock was put into place and in 2012 the net worth sweep was arranged to exploit the rest of the equity shareholders, as you would put it;

but converting preferred to common at the prevailing common price is commonplace in restructurings. in this case it opens the door to raise more preferred later on and subsequently makes common more attractive to raise sooner. you don't seem to understand the recapitalization mechanics quite yet but it is clear as day to meeee