Fannie Mae-No Politics (FNMA)

[TII]

Dax, regarding the warrants, Mnuchin and Watt can do whatever they seem fit to do with them. All it would take is the stroke of a pen. Keep in mind, the current warrant arrangement is set up that the UST gets to exercise 79.9% of whatever the outstanding number of share are when they exercise them. So, it's not just limited to four times the current 1.15802 billion shares outstanding right now. If the companies try to raise capital through a sale of more shares, the 79.9% is then based on the 1.15802 plus whatever the new amount is. I'm not saying it will happen this way, but it can. And, because of that, the current warrant agreement makes it virtually impossible for FnF to recapitalize. Add to the fact that the UST has received over $68 Billion more than they forced FnF to take and that's why I believe something will be done to change the warrants as they stand now. Ultimately, from a business standpoint, if you're trying to recap companies, whatever warrants you do use would have to be exercised at a high strike price, which in turn would be good for common shareholders as their shares would be valued at that price too. Nooch is a smart businessman, I believe he'll do what's right to get them out of gov't ownership and allow then to succeed, relatively quickly. Which is basically what he said was needed.

Time will tell, I guess.

Can the warrants be exercised partially. Say exercise 1/4 or 1/2 of them? Seems like a valid settlement enticement. Or are the warrants all or none.? Anyone know?