Replies to post #9160 on Fannie Mae Preferred S (FNMAS)

[NewJerichoMan]

Lawrence McDonald is hearing the same things I am in regards to the FMIC and the Corker / Warner bill.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=88842499

[rosen62]

Dig deeper on the author. He is not an analyst. Simply check comments on amazon from his 08' book about Lehman. Specially, the low rated comments which will bring a better light of where he is coming from. Also, check the draft for treatment of shareholders. I would give more credence to someone who puts his money -and others'- on the line (Berkowitz) than this author. The Corker Warner draft gathers attention because it is the 1st serious attempt at reform.

[camaro4me]

Where do you the think the funds to capitalize fmic will come from? Who would invest in fmic if they shaft the holders of F&f jr preferreds?

[Letgoofmyfannie]

Re the proposed "FMIC" (it doesn't presently exist except in Cloudcuckooland); can some smart person explain who'd want to be On The hook for the first 10% of losses, especially after what Stupidity we've seen the government is capable of in these last few years?

They could pass a bill and say whoops it's now 20%. What investor in their Right Mind would put money into these (high risk) mortgage businesses? It's a ridiculous concept by Corker and Warner. That being said the whole Convocation of Idiots is a joke, so I agree it is a huge risk.

But who would want the business?