Fannie Mae-No Politics (FNMA)

[Potty]

Fire, the Treasury and FnF entered into a contract way back when, part of that contract involved the Treasury receiving warrants for 80 % of FnF common stock at price of cents. Those warrants can be exercised till something like 2028.

So Treasury will probably sell those warrants either back to FnF in whole or in part, perhaps for the #10 billion the companies are owed in overpayment, OR Treasury will sell the warrants to investors as it did with other companies (like AIG etc)

The Tresaury makes as much money as it can by maximizing price of common -- since these are warrants for common shares, hence this incentivizes Treasury to maximize common price for our shares

There are, at least presently, no court challenge to warrants so far as I know

Hope that helps, potty