Will Liquidation Preferences Turn Fannie Mae Into Lehman Bros.?
Fannie Mae and Freddie Mac will be able to keep retaining earnings, but there’s a catch—in the form of liquidation preferences. The latest amendment to the Senior Preferred Stock agreement calls for an extension of the loan that can never be repaid. [soros] Q4 2020 hedge fund letters, conferences and more Fannie Mae, Freddie Mac face liquidation preferencesThe Treasury and the Federal Housing Finance Agency filed the Fourth Amendment to their Senior Preferred Stock agreement with the government-sponsored enterprises. According to analyst Dick Bove of Odeon Capital, the agreement forces Fannie ...