Replies to post #767957 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

Have you never experienced a trading halt in a stock? It's always about hiding something strongly price-moving from shareholders. Legal problems can be avoided if, for example, the announcement is made over the weekend and the shares are/remain suspended from trading on Monday and thereafter.

If this weekend announcement were followed by, say, an SPS-to-common conversion, Friday's last price quote would be relevant, making for high dilution. The government has a vital interest in high dilution, because it gets all the more for itself. Or do you still believe, after all these lawsuits and lies, that the government is the "shareholders' best friend"?

[LuLeVan]

"I don't think the SEC or any court would approve of the legal shareholders segregation so JPS can swindle wealth away from shareholders."

The government would be more than happy if it could dilute the JPS at the same time/stroke. It's not best friend of the JPS either. Unfortunately, the JPS contracts prevent the government from doing so. It's not that JPS holders run the show here, what you seem to suggest. The malice comes from the government.

[kthomp19]

Do you realize how many lawsuits would evolve from what you are stating?

You're confusing "lawsuits" with "successful lawsuits".

Treasury was willing to go through with a pref-to-common conversion in late 2020. They obviously don't fear any lawsuits at all. Your threats are empty.

Will there be lawsuits? Perhaps. Will they succeed? Given how all the NWS cases have gone it's highly doubtful.

You think it legal for government to stop and cease legally traded shres of shareholders just so they can finagle a JPS get rich quick scheme?

The "get rich quick scheme" is for Treasury. The juniors get to come along for the ride because of their contractual rights.

I don't think the SEC or any court would approve of the legal shareholders segregation so JPS can swindle wealth away from shareholders.

What wealth? The commons are worth less than 70 cents per share right now. You don't get to talk about what the shares "would" or "should" be worth because that's speculation and according to your own logic you can't possibly know the future.

And again it's not the junior pref holders that would be leading this charge. They would just get favorable treatment (vis a vis the commons) because of their contractual rights.

Immediately, that day, suits would be filed, I guarantee it.

You don't have a crystal ball. You cannot possibly guarantee this.

That is, unless you plan to file such a lawsuit yourself. Do you?

In the same instance, lets say they cancel the seniors and warrants, but tell JPS they will never get another dividend.

That means no dividends for the commons either, which would keep their price very suppressed until the junior divs get turned back on. Your cure is just as bad as the disease.