Replies to post #780286 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

Wrong

The biggest - closest to happening !!! - effort to wind down was in the Republican SENATE ----- and of all things stopped by four seriously left Dems --- Warren Brown and two more

BO --- with almost identical words to the DJT study report --- wanted to keep F and F but far smaller with more competitors

The two positions turned out super close when the DJT ordered study of options was written up (recall the last option in the DJT team report was CH 11 !!!)

[Wingsjr]

Don’t know why you would use Seeking Alpha, they are Hedgie’s Shill. So what did they lie about now? FnF are going Bankrupt? FnF Coms will go to 1 penny?

[Ace Trader]

So he’s saying SPSA will paid classes as paid off! JPS get par or a negotiated 20% of par. But he says commons get diluted by 90% ??? I hope not !!

https://www.valuewalk.com/fannie-mae-freddie-mac-exit-conservatorship/

What will happen to the shares?

At that point, the securities could be called and replaced with preferred shares that have a much lower coupon or possibly be convertible. If that happens, the value of the preferred shares will increase well before the dividend is paid. Bove expects a 100% price appreciation, and if they hold for three years, "well more than that."

On the other hand, he believes the common shares could be diluted by 90% to 100%. He also expects Fannie's and Freddie's earnings power to be "meaningfully compromised," resulting in a decline in the common shares' price.