Replies to post #708633 on Fannie Mae-No Politics (FNMA)

[Stern is Bald]

Ah theres glenn today... commons worth .10 cents....

Can always count on Glenn super accurate predictions...

"Rich by May..."

[Freddie bagholder]

#1 gives treasury additional 19% for $236B(or whatever the current liquidation preference is).
Parrot will say its not a good deal and liquidation preference is funny money.

[FFFacts]

Those are not the only 2 options. They could use the liquidation preference as a loan that diminishes the value over time. Or any scheme/variation thereof. You think that whatever they decide would be immediate dilution or write down but that is not necessarily the case it could be a long process with milestone requirements.

[5bagger]

Heavy conversion, dilution nets them nothing wrong on this point GB

Warrants is how they will make money.

If they convert AND use the warrants for 79.9, then they would own 90% of the companies... the other 10% would be JPS conversion of $32B.

So, they get 80% anyways and do not have to deal with another round of lawsuits.

[JGlen]

Pardon me for not knowing anything about conversion laws, but is the only options convert to common or write-off. There’s no option of conversion to jps or a split conversion of common and jps? Considering that they are senior shares, shouldnt they affect jps and the warrants affect common? Just asking a probably stupid question but then I’ll learn something new.