I was reading the article as you posted this. That IS the kind of news that I like to hear as well as what moves a stock price. Right now, nobody in government has a clue what to do with F&F. So, to have someone who was top man at the treasury to say he has a plan, well, congress would have a hard time saying his plan would not work. This is a huge swing in the right direction.
He did not provide any insight into common shares of FNMA, only the preferred shares. This spooked me somewhat. Would there be value in the common FNMA shares , IF FNMA liquidated? "... Millstein says the statute under which Fannie and Freddie would be liquidated incorporates an "absolute priority rule," like the U.S. bankruptcy code". Seems to say that a liquidation would be similar to a bankruptcy proceeding? We know how commons are treated in a bankruptcy proceeding. Any insight would be welcomed.