Fannie Mae-No Politics (FNMA)

[Zargis]

The only reason I can really see the warrants being invalidated is - not because they were created as a warranty (the documents don't really specify that) - but, due to the FHFA contracting the agreements with the treasury on behalf of Fannie and Freddie - against their wishes - and in a form of self dealing. How else can it be viewed though when the government creates HERA, takes control of the company and then forces such agreements? (Not to mention the amounts the FHFA has already allowed to be transferred to the treasury)

The conservator ship occurred, then the SPSPAs. Not, the other way around.

Logically, at this point, the government will likely do everything in its power to not have to re-pay a cent back to fannie mae and freddie mac... my optimistic view is that they may invalidate the warrants to make 'share holders whole' among other potential agreements.

That being said, at this point I do not believe we will have it both ways. (i.e. we will not have all the billions back and a back-dividend to over ride the 100% dividend taken by the government) AND also have the warrants expunged. If that were to occur, it would have to be 100% court ordered and enforced - I do not anticipate it happening that way. (plus, it is too greedy to consider likely)

Be well,

-Zargis