Fannie Mae-No Politics (FNMA)

[Zargis]

I've disliked this bill as it does some things right, and a lot wrong.

Essentially what all bills do it seems as the writers fail to understand key concepts the bill(s) purport to fix / change.


Example: look closely at patswill's post.

Mulvaney's bill allows / forces the warrants to be exercised by Treasury.

See (2) and (2)-(c)
EDIT: I meant Sec2-(2) and Sec2-(c)

(2) REDEMPTION OF VARIABLE LIQUIDATION PREFERENCE SENIOR PREFERRED STOCK.—Pursuant to paragraph (1), the Variable Liquidation Preference Senior Preferred Stock of each enterprise shall be redeemed upon the date of the modification of the Senior Preferred Stock Purchase Agreement required under this subsection and,

And

(c) Exercise Of Warrants For Common Stock.—Notwithstanding subsection (a)(2)(C) of this section, upon the enactment of this Act, the Department of the Treasury shall exercise the warrants for the purchase of common stock of the enterprises provided to the Department under the Senior Preferred Stock Purchase Agreements.

As you read its first sections, at first it seems the Treasury Obligations of the SPSPAs are being reduced to zero along with the warrants, however this is not the case; as seen in (2)-(c)


Regardless, warrants should not be valid.
Be well,

-Zargis