Replies to post #745547 on Fannie Mae (FNMA)

[Rodney5]

Robert let me say this real slow, the Shareholder’s are under contract

Contract
Contract
Contract

It’s written in the contract Optional Pay Down of Liquidation Preference.

The Third Amendment cannot be used to wipe out the 10 and 12 percent dividend rates in the initial stock certificates. IT DOES NOT MATTER if the Third Amendment Net Worth Sweep is declared legal or illegal, THE DAMAGES ARE the extra payments to Treasury must be treated first as though they were a return of capital that calls for a dollar-for-dollar redemption of the senior preferred, thereby reducing the Treasury’s liquidation preference. Once all those shares are redeemed, the remainder of the money paid over to Treasury should be treated as excess payments that must be repaid in full to Fannie and Freddie with interest.

AGAIN!
The Third Amendment cannot be used to wipe out the 10 and 12 percent dividend rates in the initial stock certificates.

INITIAL STOCK CERTIFICATES