Fannie Mae-No Politics (FNMA)

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Reasonable minds may disagree.

“THIS ("warrant”) CERTIFIES THAT, for value received the United States Department of the treasury…. Is entitled to purchase at the exercise price…shares of common stock, no par value, of the company, as provided herein” http://www.treasury.gov/press-center/press-releases/Documents/warrantfnm3.pdf";

for value
The value given for the SPSPA. This is one contract. SPS and Warrants in exchange for 100B and 100B additional line of credit, (really an option to sell more to the gov). Bad deal, we all know that. Enforceable, I think so, this was a package deal. The Government will argue it was prudent to demand such a steep price because it's 100's of billions of dollars. Consideration in contracting does not have to be fair, it just has to be of value.


I do hope and wish the warrants are unenforceable, but i haven't seen anything that would invalidate them.