Fannie Mae-No Politics (FNMA)

[kthomp19]

if the GOVT is GOING to MAXIMIZE it's RETURN

it will "1st" have to "MAXIMIZE the $COMMON $SHARE $PRICE"

Wrong. This is only true if Treasury exercises the warrants and writes the seniors off. If Treasury converts the seniors to common instead, then they will want to dilute the existing common as much as possible.

so it can "exercise it's warrants" (which I feel will be ELIMINATED)

This directly contradicts your first point. If the warrants are eliminated, Treasury will have no incentive at all to prop up the share price of the existing common.

Warrants were issued to "ensure LOAN repayment" - ALREADY DONE !!!

Wrong. And what's funny here is that the very report you quote proves you wrong.

The value of the warrants issued to the government under the terms of the PSPAs could potentially increase, thereby providing enhanced value to the taxpayers.

That shows that the warrants are not, and were never intended to be, collateral.