Fannie Mae-No Politics (FNMA)

[Guido2]

I have posted the warrant agreement here a couple times. It has definition for various terms including fair market value. No one with any sense will support the idea that 100,000 shares for a dollar is fair market value. Perhaps, the reason for the inclusion is to allow the corporations to buy back the warrants just like the TBTF banks did after paying back the bailout. I don't believe Fannie and Freddie should pay anything, but if we look at the big picture, it's not much. At previous 20 days closing price, it would cost Fannie around $8 billion and Freddie just over $5 billion. This can just be an offset against the overpayments.