Replies to post #716823 on Fannie Mae-No Politics (FNMA)

[bradford86]

it can be

[MoneyRobot]

Delete

[Fnmaman]

Thanks for the excellent response with the link.

[Golfbum22]

Rut Roh

The Mickey Mouse conversion plan isn’t real?

Goofy will be upset because he doesn’t like to lose all the time

Too funny

Lmao

[Golfbum22]

Sticky please

[kthomp19]

The Senior Preferred Stock can not be converted to common stock. The people over on the hub have it wrong! The senior preferred can only be deemed paid off.

Nice try, but you're wrong here.

No 6 and No 7
Quote “ No Conversion or Exchange Rights
The holders of shares of the Senior Preferred Stock shall not have any right to convert such shares into or exchange such shares for any other class or series of stock or obligations of the Company.
7. No Preemptive Rights
No holder of the Senior Preferred Stock shall as such holder have any preemptive right to purchase or subscribe for any other shares, rights, options or other securities of any class of the Company which at any time may be sold or offered for sale by the Company.” End of Quote

These two clauses only prevent Treasury from unilaterally converting the seniors to commons, as in without FHFA's approval.

Neither of those clauses, nor anything else in the SPSPAs or Senior Preferred Stock Certificates, prevents FHFA and Treasury from negotiating a senior-to-common conversion.

A senior-to-common conversion was listed as a possibility on page 27 of Treasury's Housing Finance Reform Plan from 2019. That means either Treasury doesn't know how to read and interpret contracts it signed or you're just plain wrong. My money is overwhelmingly on the latter.

This is just a tired rehash of the "juniors can't be converted to commons because their contracts say No Conversion!" argument. All the clause does is prevent one party from forcing the issue. Incidentally, a junior-to-common conversion was also on page 27 in Treasury's report.

[stockprofitter]

We’ve gone over this 1000 times. Thanks again for posting good real pertinent information.

Cheers :-D

[clarencebeaks21]

Listen: Kthomp19 is correct. Again. We can keep explaining it to you. We can’t understand it for you.