Replies to post #776547 on Fannie Mae-No Politics (FNMA)

[tutt1126]

Somehow, all jps could be wiped out at the time of the settlement.

[JOoa0ky]

Distribution of capital is allowed after conservatorship release.

[Fannie Heyyyyy]

I agree. FnF need to come out of conservatorship with commons only. Time to retire all the JPS letters. Too many of them still in existence. Wipe the slate clean.

[Donotunderstand]

seems the same but it is not

juniors were not made subordinate to Senior preferred

but rather the GOV invented and created out of thin air SP paper was put on the top of the equity pile

IMO --- different from a FORCED conversion at below PAR ---

not saying not possible - simply saying the SR precedent is not related as that is MADE UP paper by FIAT

[Donotunderstand]

I would take 60% of face/par for my JPS - but not less

[Ace Trader]

HERE'S THE LEGAL CONTRACT OF 1 JPS I OWN !
No where does it say JPS can be converted !!! You legally can't change this contract without the agreement of both parties ! Some on this board said I was crazy buying these a few years ago but my hedge was the rising interest rates. A a base of 4.79% we find ourselves over 8% now. KNOW WHAT YOU OWN !

PAY CLOSE ATTENTION AT THE BOTTOM OF PAGE 3..............

Even if Freddie tries to change the terms they are NOT allow to change them where it harms current holders investment. AKA they can't convert to common or any other class that would hurt there investment so even if they wanted to they would have to offer the same value in new shares..