Replies to post #756587 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Why should JPS take any haircut?

In order to get things done. Mnuchin said that Treasury was unwilling to take an equity position below the juniors, which is why he wouldn't convert the seniors to common unless the juniors took a similarly-sized haircut in their own conversion to common.

The only way the JB Admin will be able to fund a politically inspired woke piggy bank from GSE equity this Term is to settle with JPS and Common.

Only the juniors. No common-only shareholder has any lawsuit going anymore, at least one that isn't about to be dead for good once the USCFC rules (Fisher, Kelly).

No reason any public security holder gives the UST any concession especially since they wanted to nationalize the GSEs as early as March 2008.

Like it or not, Treasury has almost total power over FnF's exit from conservatorship. The juniors have the power to keep their contracts and refuse any harmful amendments. The legacy common have no power at all.

I paid $ 25 for FNMAT in May of 2008 - I want my money back plus some.

Unlike people who bought shares after the conservatorships started, and especially after the NWS, you are deserving of sympathy here.

However, the idea of "getting your money back" is a fallacy I have seen countless times at poker tables. A player will lose a pot, point at the chipstack of the player who won that pot, and say "I'm going to get my chips back".

The money is gone. It is not yours anymore. There is no such thing as "getting it back" because money is fungible.