Replies to post #721669 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Gov received "dividends" for payment toward debt and not for a forever profit.

What debt? The senior prefs are equity. That's why the dividends never reduced the liquidation preference.

Spinning a new narrative is what is going on.

What narrative? And who is doing the spinning?

Gov received more than enough money.

There is no such thing as "enough money" for a government.

In fact, it goes the other way here: Treasury writing down the seniors rather than converting them to common is giving up value for nothing in return. Why would they do that?

And please don't say "lawsuits". A senior-to-common conversion would result in a legal liability of 1.25 times that of exercising the warrants, and the January 2021 letter agreement says both that Treasury won't allow release unless all lawsuits other than those with cumulative liability of $5B are gone and the warrants are exercised in full. That means Treasury's liability for a senior-to-common lawsuit is at most $6.25B. Peanuts in the grand scheme of things.

Looking forward to lp zeroed and warrants tossed.

I hope you realize that a senior-to-common conversion accomplished both of these goals.