Replies to post #768734 on Fannie Mae-No Politics (FNMA)

[The Man With No Name]

If we are zero, then so is JPS. It's not a bankruptcy though, never has been. A taking, plain and simple. How many times has it been stated that commons/JPS own the approx 20.1% and government seniors and warrants the other 79.9% ?

Whoa whoa whoa, hold up a second there little buddy. You need to take a step back and understand one fundamental concept. Treasury has the right to own 79.9% of the commons and commons alone. The JPS aren't touched. You seem to think that commons and JPS are pari passu. They are not. Hence why JPS are "preferred" shares. This 'preference' places the JPS in line in front of commons for recovery purposes.

You're right, it's not a bankruptcy, it's worse than a bankruptcy. In bankruptcy you have rights. Regardless, a restructuring, which is necessary to exit conservatorship, will be done exactly (the mechanics of it) as in a bankruptcy plan of reorganization.

It's not the warrants you need to worry about. It's the SPS. Treasury could convert them to commons and effectively get 99.9% of the commons....before the JPS are converted to commons. Don't worry though, you will still retain your common shares, just slightly diluted.