Replies to post #823320 on Fannie Mae-No Politics (FNMA)

[dcpi212]

There is an accounting rule that the balance sheet should be added to that of the parent if the have a stake above a certain threshold.  My memory is that those making the takeover thought that the threshold was 80%.  That was why the warrants are for 79.9% and the SPS was structured as a liquidation preference. But I guess the Supremes ruled the Feds can do whatever and the Constitution can be ignored. 

[BREAKER098]

At 79.9% they have operational control and de facto ownership of the company. If you own one share you have partial ownership - but does not entitle you to start making operational decisions. You can at 79.9%. Just facts. Go figure…

[Donotunderstand]

owning the common stock is owning the company for a company that has an equity base and trades on exchanges . It is a public company ---- not a private company.