Replies to post #634066 on Fannie Mae-No Politics (FNMA)

[JOoa0ky]

Quote:
Citi's conversion offer was at a ratio 3x greater than the market ratio the day before, and this happened under a BOD that did have a fiduciary duty to shareholders.

These are important Facts for FNMA to consider.

A Board of Directors with fiduciary duty to shareholders went ahead and offered their Preferred holders a juicy conversion.

I would expect the same here considering the GSEs have no fiduciary duty. Maybe the Conversion Terms will be even better than the Citi holders got?

There were some prominent holders of CITI (Prince Al-Waleed bin Talal), which was why there were generous terms.

In the case of FnF prefs, its just sleazy hedgefunds. No bueno.