Fannie Mae-No Politics (FNMA)

[955]

Mr. Werfel indicated that the intent at this time is that the control is intended to be
temporary and the FASAB, FASB and GASB literature provide that temporary control
should not lead to consolidation. The intent of Treasury is not to exercise the warrants
that provide 79.9% ownership. The purpose of the warrants was to drive the stock price
down to next to nothing. When the government steps in to aid a publicly traded entity it
does not invite fair trading. The Treasury wished to freeze the market for this stock and
the warrant accomplished that goal. They have no voting interest and only own an
option to own the entities.

-Mr. Werfel, FASAB member, FASAB Meeting Minutes, October 22-23, 2008

http://www.fasab.gov/pdffiles/oct08mins.pdf