Replies to post #746267 on Fannie Mae-No Politics (FNMA)

[The Man With No Name]

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.

Which just means the FHFA has to sign off on it with another amendment. This will happen, either that or it will be decades before a release becomes possible.

You and Barron need to come to grips with reality. The NWS is legal, done and over. That money ain't coming back. That money didn't pay down the LP either.

[kthomp19]

We understand how the cram down works, the Treasury converts the Stolen Money into Common Stock diluting the Common Stock to 99% wiping out the Common Shareholders and then doing a reverse split afterwards selling the Treasury shares in an IPO. WE GET IT.

Good, I'm glad that has been established. All except the "stolen money" part. If you want to allege theft in a court go do it, otherwise it's just a fart in the wind.

Thank you for explaining how the FHFA possibly will allow the Treasury to Steal from the shareholders.

How is it stealing from shareholders? Common shareholders will have just as many shares afterward as they did before. If the market value goes down as a result, well, that's just the risk a common shareholder takes.

Courts have ruled that the conservatorships, issuance of the warrants and seniors, and the NWS were not takings. A senior-to-common conversion doesn't stand any chance of being rule as one either.

BY CONTRACT THE TREASURY IS NOT ALLOWED TO CONVERT THE SPS INTO COMMON STOCK. THIS CAN ONLY HAPPEN IF THE FHFA ALLOWS IT.

I'm glad you included that last sentence. Why on earth would FHFA not allow it? Said conversion would instantly add $187B of core capital to FnF at zero cost. There is no downside at all to FHFA or FnF.