Replies to post #636861 on Fannie Mae-No Politics (FNMA)

[JOoa0ky]

That footnote from Layton is scary. Maybe he knows something about what's going to happen to Commons?

Layton:
Quote:
As the objective is to eliminate ownership of any common equity by private-sector investors, the transition will also require that the current ownership of common shares (other than by Treasury) be eliminated.

No Bueno Amigos! frown

I find it very impressive that he was at FMCC for 7 years and still doesn't understand how it all works.

FnF were never "nationalized" because the USG did not want the liabilities on its balance sheet... Then there was also the fact that the whole MBS took off like a rocket because US started repackaging and selling it to other countries. Now you can't exactly let FnF fail when the debt holders are not just plebians that can be offended at will.

[ItsMyOption]

I understand you favor your Jr Preferer's but IMO there is no way the Government will cancel common shareholder value. The scous will not let them and if Government can steal the value of a company that makes good profit - why don't they also steal Amazon or Apple?

IMO, Common shareholders will win both FMNA & FMCC back.

That footnote from Layton is scary. Maybe he knows something about what's going to happen to Commons?

Layton:
Quote:
As the objective is to eliminate ownership of any common equity by private-sector investors, the transition will also require that the current ownership of common shares (other than by Treasury) be eliminated.