Replies to post #115648 on Fannie Mae-No Politics (FNMA)

[mikoli007]

"Because the appeal of preferred stock is centered on the security of its dividend payments, the long-run value of the GSEs’ preferred stock has been reduced. The value
of common stock has been reduced because of the termination of their dividends and increased uncertainty over the future long-run viability of the enterprises. Even if the GSEs were to return
to stockholder control, it is not clear how much appeal their common and preferred stock would have for investors. If the GSEs were unable to raise capital, they would be unable to continue."

When this is returned to the stock holder this would definitely not be the case!!!

Thanks for the read!