Fannie Mae (FNMA)

[kthomp19]

Thanks for looking that up. Where did you find your information? I have found bits and pieces in various places but no central location.

By what you found, Treasury never actually owned any shares. I believe that would get around rekcusdo's Section 16 idea that would require Treasury to be a fiduciary and hold the shares for at least 6 months if they ever took a more than 10% stake in the equity (do I have that right?).

But if the companies bought back the warrants, where did all that money come from? If Treasury still expects to make another $100B, for example, from selling the warrants, FnF would have to come up with that cash themselves. The only way to do so that I can see is a massive equity raise and subsequent dilution to existing shareholders, basically a warrant exercise scenario but potentially worse (or better, I suppose).

Can Treasury sell the warrants piecemeal, to then be exercised by the buyers in chunks? No single investor would be able to afford 79.9% of a recapped FnF.