Replies to post #743531 on Fannie Mae-No Politics (FNMA)

[Achilles deFlandres]

It certainly seems that conservatorship has wiped out the JPs effectively. The mechanism is a self funding out of hand bureaucracy.

[kthomp19]

A bankruptcy filing. Treasury owns the entire liquidation preference and they dictate.

It's bankruptcy, not liquidation. The charters, with companies attached, will continue to exist. Would there be newcos that inherit the charters or would it be the same corporate entities that hold them now?

Not necessarily. I have seen instances in which common and preferred split 50/50 post bankruptcy any value gifted by the debt holders/ senior interests.

Do you have links handy?