Fannie Mae-No Politics (FNMA)

[imtheshadow]

So the gov't got the warrants for a commitment fee to provide funds if needed (step 1) ... then the gov't declared the DTAs worthless and, voila, FnF "needed" the funds (step 2) for which they paid 10% (and then more with the sweep). So before FnF needed a dime, they gave up 80% of the common just in case they needed capital - capital that could have been secured at a fraction of the value of the warrants. Still, unless Wash Fed (or future cases) can prove the terms were fraudulently established, I think the warrants will stand as the mechanics (not economics) seem sound. cheers, shadow