Replies to post #692644 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

Thank you for your answers. I too appreciate your posts very much.

I wonder if JPS shareholders are not also affected by HERA's succession clause. Are you sure JPS holders would really be asked f. e. to agree to a haircut (based on contractual rights)? Or could FHFA and Treasury bypass/ignore them in much the same way they bypass common shareholders?

[Donotunderstand]

common does not get a prospective vote on regular 11 as well

normal

voting is on a PLAN but "HERA" and management get a lot of flexibility - say to craft a settlement for a vote

[clarencebeaks21]

I agree. So in a scenario where a 2/3 vote by jr preferred shareholders is undertaken, is that happening post-conservatorship? If indeed all voting rights have transferred, then it seems to me that to revert voting rights to any currentbshareholders, the Conservatorship must end. The Director also appears to have enough power to initiate a prelim vote so that a firm commitment to end the Cship can be executed contingent on final vote outcome, and so forth.