Replies to post #777539 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

The order of the restructuring is important. The first thing that has to happen before anything else is to take care of the seniors.... Result: Massive commons dilution; JPS remains intact.

According to Calabria's book, Mnuchin asked for a simultaneous conversion of SPS and JPS to legacy commons (with equal haircut). That means JPS would not remain intact.

[Donotunderstand]

That is how it should be in normal times - but nothing has been normal

At that point - with billions and billions and billions of common shares ? the question I asked - in this context

does one assume any conversion - by agreement - of JPS to common - occurs before such POTENTIAL dilution or after

I guess if one believes in the JPS "contract guarantee" it would be after

Then - WTS ?

all said - with me believing - the rules will not make a difference if Treasury does not want them to