Replies to post #691498 on Fannie Mae-No Politics (FNMA)

[jog49]

Shareholders have had NO representation for an awfully long time. Someone will probably say well, there's a board of directors. Yes there is and that sitting BODs was appointed by the government so there again, shareholders have had NO representation for an awfully long time. At this point in this fiasco, I feel sure that shareholders are of NO concern to the government in any aspect of running the GSEs or their futures. Shareholders are allowed to hold highly suppressed stocks and that's it as far as rights are concerned.

[kthomp19]

Could the SPS be converted to common without a shareholder vote?

Yes. It would happen before the end of conservatorship, meaning only FHFA and Treasury would have to agree.

Would Delaware and Virginia law apply?

No, because the succession clause in HERA is what controls here.

What are the voting approval threshholds for a reorg of this magnitude?

As long as it happens during conservatorship, all that's needed is for FHFA and Treasury to agree. Existing shareholders would still have no voting rights (just like now).