Replies to post #709501 on Fannie Mae-No Politics (FNMA)

[nats1]

Furthermore, the capital gains paid by JPS holders would more than cover any damages to commons

So you are saying JPS will be redeemed (a taxable event) instead of converted (a non-taxable event)?

[FOFreddie]

If the SPS are written off for zero - wouldnt the retained earnings account be increased by the amount of the write off and flow the shareholders equity? I believe you said your were a bankruptcy expert so how would the write off of the SPS to zero be treated? I am not a bankruptcy expert but I thought it would be akin to voiding a fraudulent conveyance or preference and therefore the SPS equity would be returned as retained earnings?

[Freddie bagholder]

"Conversion could come at any time." Are you making stuff up?

[Forrest Gump Luck]

Wouldnt that put all GSE debt on government books? Isn't that the whole reason they have 79.9%?