Replies to post #768125 on Fannie Mae-No Politics (FNMA)

[Lite]

There's a very good reason why Warren Buffett fully terminated his preferred position in FNMA. You want to think you know better than him,?

Really wish I had info on Mr B meetings with Bo. Munger was part of the Admins cabinet, correct?

[kthomp19]

Pretty sure all have a clause saying the companies and BOD have the right to modify the contracts at any time due to uncontrolled events.

WRONG!

Scroll to the bottom of this page and you will see links to the Fannie Mae junior pref contracts. This page has links to the Freddie Mac junior pref contracts. Here is the important part (from page 25 of the FMCKJ contract):

Amendments
Without the consent of the holders of the Preferred Stock, we will have the right to amend the CertiÑcate of Designation to cure any ambiguity, to correct or supplement any term which may be defective or inconsistent with any other term or to make any other provisions so long as the amendment does not materially and adversely aÅect the interests of the holders of the Preferred Stock. Otherwise, we may amend the CertiÑcate of Designation only with the consent of the holders
of at least two-thirds of the outstanding shares of Preferred Stock. On matters requiring consent, each holder will be entitled to one vote per share.

Make sure you read that carefully. Any amendment that would "materially and adversely affect the interests of the holders of the Preferred Stock" requires approval from 2/3 of the holders.

This is precisely the kind of language that the commons don't have, which once again disproves your idea that the commons and juniors are the same.

I've read 4 of the flyer contracts and they are all pretty much the same.

Given what I quoted above, I don't believe you have actually read any of them. Since you keep making claims about the junior prefs, it would behoove you to read every word of those contracts before spouting off.

[Ace Trader]

I have! and clearly states nothing of the sort !
I've read the contracts I'm in vested in and each and everyone!
https://www.quantumonline.com/ParentCoSearch.cfm?tickersymbol=FNMA

Takes FNMAS : Read page 5 clearly states JPS have voting right when it comes to changes and if JPS sharholers don't like whats offered then don't vote for it tell the GSE's no or yes!
https://www.fanniemae.com/sites/g/files/koqyhd191/files/migrated-files/resources/file/ir/pdf/stock-info/series_s_12062007.pdf
UNDER CONVERSION RIGHTS NONE. MEANS NO CONVERSION WHATS SO EVER!