Fannie Mae-No Politics (FNMA)

[kthomp19]

This doesn't prove your point. You said "The Warrant gives FnF a line of credit", and that's still wrong.

Treasury agreed to extend FnF a line of credit in the (eventual) amount of $400B in exchange for the seniors and warrants. That does not mean that once the draw money is repaid, the seniors and warrants must be cancelled.

If this is going back to the idea that the warrants are collateral, that's still incorrect too. The role of collateral is to provide value in case the money is not paid back, but the warrants would be worthless if FnF went under. Therefore they do not play the role of collateral at all.