Replies to post #743268 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

interesting

[The Man With No Name]

Just to make sure, by "zilch" for the commons you mean near zero and not actual zero, right? It might seem like semantics but for the juniors there's a huge difference.

Oh I'm well aware of the difference. And I also said "may" for the juniors. Without going into the weeds, let's just agree that commons can essentially be wiped out...like in a penny or sub-penny valuation...without receivership. As long as common holders retain their shares, even if they are diluted to practically worthlessness, they aren't impaired.

A long runway indeed.

[FOFreddie]

Hi Kthomp,
If the Charter is hard to change and you are saying that the USG will dilute common equity to "zilch" - how can the USG sell new common equity under the same Charters? Why would new investors take the risk that they could be the next victims of a future USG nationalization under HERA as interpreted by Collins?