Replies to post #756518 on Fannie Mae-No Politics (FNMA)

[bradford86]

I would add that the spspa is an equity instrument, not a debt instrument. Changes the calculus a bit for all the tards on this board. Spspa goes up means net worth goes up means probability of receivership goes down and at these levels of capital is near zero.

[Rodney5]

Again, the Treasury’s liquidation preference is greater than the Net Worth of the business. That means the company doesn’t have enough money to pay off the Treasury! Therefore there is no money to pay the JPS! You are wiped out with your JPS and I am wiped out with my Common Stock if the Treasury doesn’t cancel the LP and declare the SPS paid in full.

[SREZ]

Kthomp19,
What kind of haircut do you envision JPS holders taking? You make it seem as if it would be the same % as the write-down in the LP. What % do u forecast?

It has been rumored/reported that Mnuchin offered 30% FV to the JPS holders, & JPS holders said, "Nein." IF Trump gets back in do u think Trump would be dumb enough to re-instate Calabria as FHFA Director? Who would Trump's FHFA pick be? Treasury Secretary?
TIA, SREZ