Replies to post #775917 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

Even if it’s 500 billion shares you will have a hard time finding a buyer.

After the 500 to 1 reverse split there would be just 1 billion new commons. Less than the 1.8 billion FnF commons today.

[bradford86]

who knows how many shares, but yeah, that's the risk of owning common shares, no security

[JOoa0ky]

People will line up to buy. After the dilution, even I'm willing to buy commons at that point. But before the dilution... NO.

[kthomp19]

So, you’re expecting the commons to be diluted to one trillion shares. Yet the JPS will get par and not be harmed.

It probably won't be quite that extreme; if Treasury converts the seniors to commons it will likely only happen if the juniors accept a conversion to common at a similar discount to par.

Who in his or her right mind would buy these shares?

People who want to make money and don't care about how prior shareholders were treated. Which is 99.9% of the market.

In addition, every single common share is owned by someone right now. If nobody in their right mind would buy commons after Treasury and the seniors are finally out of the way, who the hell would choose to own them today?!