Replies to post #713974 on Fannie Mae-No Politics (FNMA)

[F1Greenwest]

That is an example of preferred conversion. I don't say this will happen with GSE's...
Preferreds are like a bond(debt) and the contract is clear.

[JOoa0ky]

The pref in CITI took a haircut because CITI was BK. The GSEs aren't so the JPS here will get at least liquidation value.

Citi was bk

Just like all the other bogus examples of companies that actually needed a restructuring

Gse’s do not