Replies to post #706349 on Fannie Mae-No Politics (FNMA)

[familymang]

Shhh. people here dont like to hear reality, they prefer to live in a world where the government is a nice guy and writes down the senior preferred to zero and decides not to exercise its warrants because why would the government want an extra $100b that they are 100% entitled and no shareholders are even challenging the warrants in courts. In this world the common trades to $100++ per share. In this world maybe I also win the $500m mega millions lottery

[bradford86]

95% turns to like 97-98% when you then do a follow on capital raise

I just say 99% to simplify the conversation. Warrants only exercise is like 90% post capital raise. So if commons were worth like $5 they are then worth $0.50 with the additional dilution

Tldr possibility that there is no upside from here and in fact downside

[Achilles deFlandres]

Retrospective relief.

[Louie_Louie]

They could easily call most JPS at 50% or lower of par also. Save a ton.