Fannie Mae-No Politics (FNMA)

[big-yank]

The warrants are a right to acquire 79.9% of common equity for a nominal cost. This was part of the original bailout package given the GSEs. The warrants have absolutely nothing to do with the income sweep imposed under Amendment 3, which can and/or will continue to pay out to UST unless the government voluntarily stops it (via an Amendment 4) or one (or more) of the lawsuits prevails and either ends the sweep or modifies it under court order.

It is very hard to wrap your arms around. Even those of us that have followed this for years sometimes get confused by all the intricacies and vagaries within the Fanniegate saga.