Fannie Mae-No Politics (FNMA)

[ano]

but how do you see the warrant executed in real life,

1) FnF have no capital because treasury has it all, and now they want an additional 79.9%, no other investor is willing to enter on that basis
2) If the seniors are converted to common how can this be legally executed, pay all you have into perpetually and then convert them
3) Somehow all illegal funds need to be returned first, otherwise the government cannot make a buck on it
4) how to decide executing either the SPS or warrant or both?, who will decide with what reason and will it be plausible to the outside world and can it be executed, if it is not even proven that they entered FnF legally, and how do you get new investors interested if they have no return on investment for the next 10 years

think about it

I think the warrants were issued for two reasons.

1) To depress the companies' common share price and make them seem like they were in more trouble than they really were. This is backed up by one of the released documents from Sweeney's court.
2) To provide Treasury with even more money than they would get from the seniors alone.

I just don't see any reason for Treasury to not exercise them, unless they convert the seniors to commons (in which case it won't matter if the warrants are exercised or not). I don't buy all the lawsuit threats, and I don't think Treasury is even allowed to just throw away an asset for no consideration in return.