Replies to post #776063 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Why would JPS agree (if agreement is sought) to be treated like that ----- "similar discount to par"

?
None of us - as this is virgin territory that so far has crazy court decisions ---- none of us know the protection that JPS has or does not have - but why would they vote for a similar discount to common ?

The juniors would agree to this for the same reason Treasury would: to exchange their liquidation and dividend preference for cash in hand now via sales of the converted shares.

And to pre-empt the peanut gallery, yes, liquidation preference does have value and worth outside of actual liquidation.