Replies to post #684444 on Fannie Mae-No Politics (FNMA)

[Wingsjr]

That’s what I got when I sold my Prefs and bought com’s. 5/1. Your plan will never happen. Especially after SCOTUS. There will be no settlement and a judge can’t take from one shr holder to make another whole. No, the most likely scenario will be you holding Prefs all through SCOTUS, Remand, Up List, Retaining Earnings, Release and in a few years you might start getting dividends again.

[kthomp19]

Offering a poor JPS Conversion Ratio only means more dilution for Commons since the JPS would count towards Core Capital if Converted.

It's CET1 rather than core, but point well taken. Not converting the juniors means $33B more in commons would have to be sold, involving its own dilution.

And I can't for the life of me understand why anyone would say this isn't a bankruptcy. Calabria already said it is, and at least two massive restructurings will be needed before release: modifying Treasury's stake (to remove the seniors) and a capital raise (a recapitalization is a type of restructuring).

[Brooge warrants cancelled]

would you take 1 for 1 now?

or half to 1?