Replies to post #793174 on Fannie Mae-No Politics (FNMA)

[kthomp19]

What it does mean is that if they are to do so (convert senior preferred shares to any other class) they will need another amendment.

Correct.

After the jury decision, presided over by Lamberth, I want to see how they pull off yet another self-enriching act knee-capping current shareholders.

They will just do it. The jury verdict does not in any way prevent a senior-to-common conversion from happening. The knee-capping of existing shareholders happened in 2012 and the jury said that was perfectly fine, so long as the companies pay a total of $800M to shareholders.

Any new amendment will be the perfect opportunity to reassess the full picture and, in light of all that has transpired, the new assessment should be quite positive for the company and current shareholders.

I fail to see how a new amendment letting Treasury convert their seniors into commons would be positive for current common shareholders.

If you're talking about a new lawsuit, especially one based on the implied covenant case, all I can say is precedent shows that you will be waiting a long time for a pittance of a payout at best.