Replies to post #699599 on Fannie Mae-No Politics (FNMA)

[JOoa0ky]

Yeah, I don't really get it either. Why do some of these guys keep saying its going to be treated like a bankruptcy restructuring.

Chapter 11 is facilitated by a Judge... There, they arbitrarily assigned a post-restructuring equity % for existing common shareholders. In FnF's case there is no judge that is going to do that. If dilution is to come, it will be sold on a share by share basis and not via an arbitrary %.

Anything else? I just don't see the gses' filing for bankruptcy including Chapter 11.

[FFFacts]

I never said they would. I am trying to correct the fact that liquidation is not necessary for shareholders to be wiped out NOT ONLY ON THIS MATTER BUT IN GENERAL BUSINESS BANKRUPTCIES.

SHOW ME ONE INSTANCE IN WHICH I SAID FANNIE AND FREDDIE WOULD FILE FOR BANKRUPTCY.

[kthomp19]

I just don't see the gses' filing for bankruptcy including Chapter 11.

FnF's equivalent to filing for bankruptcy was entering conservatorship in 2008. It already happened.

It's not the entry you need to worry about, it's the exit and the concomitant restructuring.