Fannie Mae (FNMA)

[Dollars1]

Does anyone have an update on the warrants case? was just looking back at one of Obi's posts here on 6/21/14 and copied below:


Currently, the warrants are legal financial instruments that are exercisable by the US Treasury.

To exercise the warrant in whole for 4.604 billion newly issue common shares, all the US Treasury has to do is: make sure the date is before 5:00 pm on September 7, 2028 and then deliver to Fannie Mae 1) a notice of exercise; (2) payment of the exercise price of $0.00001 per share ($46,040); and (3) the warrant.

The US Treasury can assign its right to receive the newly issued FNMA common stock (exercise shares) to any other legal person (see list of Persons in the definitions). A certificate for the exercised shares is issued to the new holder and that Person becomes the holder of record of the newly issued FNMA (or FMCC) shares of common stock.

Such an assignment can be made while a related or seemingly unrelated financial transaction is done such as balancing a debt or a large payment based on the assignment and the value that can be realized by the sale of the exercised shares or...

The warrant can be waived by the US Treasury or it can be cancelled by amendment or termination of the original PSPA.

The legality of the warrants can be challenged by filing a law suit against the FHFA and US Treasury in the United States District Court for the District of Columbia or in the US Court of Federal Claims in order to render the PSPAs as illegally formed documents during an illegally enforced conservatorship.

Washington Federal v. USA is a class action attempting to do this.

Source:
Fannie Mae Warrant
http://www.treasury.gov/press-center/press-releases/Documents/warrantfnm3.pdf

Freddie Mac Warrant
http://www.treasury.gov/press-center/press-releases/Documents/warrantfrec.pdf

Washington Federal v. USA
https://docs.google.com/file/d/0B6ofth-ELqJpcmRrZ3FpSWl6ZGs/edit