Fannie Mae-No Politics (FNMA)

[Guido2]

The $5 billion was set aside to settle lawsuits. Plaintiffs only. Not class action. Direct claims were asking for missed dividends. Quite easy to cover the direct claims with the $5 billion. Bryndon Fisher has made clear what he and his co-plaintiffs are asking in their derivative claims. The bulk of it ($193.5 billion) is just an accounting entry. They are also asking for a cash refund of $26.9 billion. This obviously isn't covered in the $5 billion set aside. They didn't set aside anything for the warrants as those warrants weren't exercised. On the day they were granted, the exercise price was $46 billion less than fair value on that day (look up the definition of fair value in the warrant agreements). That would be the minimum Treasury would owe the corporations for the warrants, if exercised.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=165140870

Links to the warrant agreements are at the bottom of attached:

https://www.fhfa.gov/Conservatorship/Pages/Senior-Preferred-Stock-Purchase-Agreements.aspx