Fannie Mae-No Politics (FNMA)

[kthomp19]

Everyone has accepted the exercise of the Warrants besides a few $FNMA Average Joes.

It's quite a list, too, which includes Mark Calabria, Steven Mnuchin, Bill Ackman, the Collins plaintiffs. It is crystal clear that everyone on that list thinks the warrants are legal.

In the other corner we have laughably incorrect message board legal theories. If it comes to a fight, the Warrants-Are-Legal side will win in a round 1 knockout.

This doesn't even touch on the fact that the warrants being cancelled or sold back to FnF for a fixed sum is the worst thing that can happen to current common shareholders. Treasury is the only authority here that could potentially want a high common share price. Removing that incentive just removes the floor for the commons.

In short, current common shareholders should be on their knees begging Treasury to exercise the warrants. Doing otherwise is just biting the hand that feeds them, and such behavior is generally punished.