Replies to post #765876 on Fannie Mae-No Politics (FNMA)

[Louie_Louie]

Being in the pixie dust and full out snorting it, is far different, so put that rolled up dream dollar away, will ya?

[kthomp19]

Get out the pixie dust.

Even though no benefit of the doubt is deserved here, cancelling part of the seniors is possible. It's just that the rest would be converted to commons.

More specifically, Treasury can cancel the seniors on the balance sheet ($193B), thereby getting rid of the enormous negative amount in the Retained Earnings line and allaying Bryndon Fisher's concern, and convert the rest of the liquidation preference (~$100B) to commons. There's no material difference between this and converting the whole $293B liquidation preference to commons anyway given where the shares trade and legacy commons' lack of voting power.



As an aside, keep up the good work. It's easy to tell when somebody can't refute your arguments: they resort to ad hominem attacks.

Obviously you will never convince the echo chamber of anything, but over the years I have gotten dozens of PMs (mostly during happy hour) from users who read this board but don't post thanking me for laying out the facts and countering all the bullshit you have seen. Believe it or not, it used to be far worse.

As amusing as it is to keep destroying weak arguments, know that you are also providing a valuable service.

[stockanalyze]

man with no name should watch big short where everyone was howling at mike burry like no name here is and he will be wrong