Fannie Mae-No Politics (FNMA)

[contrarian bull]

Why would the SEC consider the warrants illegal for fnma when they had no problem with AIGs warrants

This was discussed last week. The courts did rule the AIG warrants were illegal.

However the court also decided that because the Treasury increased the value of AIG stock more than the warrants diluted the stock - they awarded a judgement in favor of the shareholders for damages in the amount of $0.

So the exercise of the AIG warrants was allowed to stand. Most think that a similar case against the f&f warrants being exercised by Treasury would yield the same result, and this is why nobody so far has seriously challenged the warrants.