Fannie Mae-No Politics (FNMA)

[YanksGhost]

The MINUTE warrants were to get exercised, damage claims from common shareholders become "ripe" and a surge of new lawsuits can be expected to stop the process dead in its tracks pending full judicial consideration.

No recapitalization can proceed involving any IPO/Secondary offering until such cases are seen to a conclusion or are settled with a new round of litigating plaintiffs from the common side of the ledger.

We have lived through 5 years of the judicial bar still churning in inconclusive legal turf and questionable applicability to an unconstitutionally structured agency that is charged in multiple suits with illegal activity. No law, including HERA, can be so empowered in a way that permits an Agency's actions to break other laws that have an unchallenged Constitutional basis.

You are correct that the GOV may elect to exercise, anyway and let the shit hit the fan. But I'm afraid Mr. Cayne is downwind of the airflow, alongside Mr. Mnuchin.

The only prudent course for GOV with warrants is to defer any action until release and relist is complete and see what the landscape looks like after Congress decides whether to reform or roll-over-and-play-dead for another decade.

JMO.