Replies to post #747008 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

Commons and JPS will most likely be suspended from trading when recap/release is announced. Therefore, there will not be this "boom to the moon" - allowing trapped commons to sell to "greater fools".

But also, as a plus, no common holder would see the devastating crash resulting from heavy dilution due to SPS-to-common conversion. I guess it would be - in theory - a crash from 50 to 0.25 cents (or lower). When the reverse split and the capital raise are completed, holders of commons will most likely find new shares (ticker: probably FNM) in their securities accounts.

But it won't be a great "deal". Someone who now holds 10,000 FNMA at 50 cents (value $5,000), should afterwards hold e.g. 50 FNM shares at $50 (value $2,500). In effect, It's like FNMA falling from 50 to 25 cents now.

[Brooge warrants cancelled]

best plan

sticky please

go look at the memes, they are popping
carvana
lucid
bed bath

[chessmaster315]

The commons were worth more than the preferreds "before" the cship, so, it's highly likely that will happen again when we get out of conservatorship.

And why not?

The preferred liquidation preference is mostly meaningless, because bankrupting and liquidating the twins which facilitate the origination, and or own around half the mortgages in America preventing new ones from happening isnt "just" a bad idea, its a catastrophic event. It would be like homelessness for America 'ON STEROIDS'.

PEOPLE overwhelmingly want/need fixed rate 30 year low down mortgages, banks dont offer. This is especially true for first time home buyers.

Its more likely the US Treasury default on its commitments, than to kill fannie and freddie without a method of continuing their services. (Yea, they may "rename" fannie and freddie..how about "Charlie and Nancy"?). I really dont care if they rename our shares "to Charlies"...and keep the rest the same.