Replies to post #692619 on Fannie Mae-No Politics (FNMA)

[Mnemonic]

Thanks kthomp, I always appreciate your posts.

Someone else asked what are the situations in which JPS go to zero. I know receivership is one, because SPS liquidation pref is so damn high that nothing would be left for JPS, much less common. What are some other scenarios?

Also, supposing these entities are turned into public utilities, how does that affect the existing capital structure? I see this mentioned a lot but no one talks about the consequences.

[clarencebeaks21]

kthomp19
Have you an opinion whether HERA’s succession clause —which appears to transfer to Conservator “all … rights…of shareholders”— included voting rights?

I am new to the board so apologies in advance if this conversation has passed.

I should note I practiced law for a decade. But I am now quasi-retired. I think I have a grasp of the legal issues and have reached some early conclusions; but I would like to hear a few of your & others’ thoughts without me first muddying the waters or stepping in carelessly.