Replies to post #12672 on Fannie Mae Preferred S (FNMAS)

[dpsimswm]

I didnt see a conversion ratio. But the fact that the hedge funds hold common shares would lead me to believe it will be generous for the common.

It would be a good idea to hold a mix of both shares if this plan goes through. The conversion ratio is the key.

As soon as a ratio is given the prices will move up and down.

[Donotunderstand]

article exciting but very confusing

the current book of business stays with GOV

the common platform stays with GOV


so what are they buying?


(maybe the current book stays with gov who in wind down will make a ton of money over 5-7 years or more? and the private money buys the GOV owned (for free now) standard platform with the common and jr preferred shares and say 20B more capital from others - so the value of common and preferred is we are the buyers with no further cash from us of over half of the new company which is FNMA and Freddie NEW business - to compete with banks etc?0

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