Fannie Mae-No Politics (FNMA)

[rekcusdo]

They will never exercise the warrants.

It's not even possible.

First of all, to exercise the warrants at all, they would need Congressional approval...like the Republicans would EVER support that.

Second of all, if they were to exercise the warrants after Conservatorship ends, they would be majority shareholders and owe us all fiduciary duties of loyalty and care. Imagine the political huffery about the Government owing a fiduciary duty to GSE shareholders. Wow, would that be crazy.

Third of all, it's already been decided that the government can not own such a large stake in AIG...though there are differences in the GSEs, the differences would quickly dissipate if the warrants were exercised.

Nope...never gonna happen. Can't happen, really.