Fannie Mae-No Politics (FNMA)

[RumplePigSkin]

Warrants can be exercised and bought by the company - exercise means payment, not necessarily dilution.

The below is related to the bank bailouts. The link is a good read to determine how Treasury methodically approaches these things, where they really don’t attempt to take advantage of TARP recipients.

Warrant Disposition Process
Upon redemption of the preferred stock issued to Treasury, an institution has a contractual right to repurchase its warrants at the fair market value.4 The banks have 15 days from repayment of the preferred to submit a bid, and Treasury then has 10 days to respond. In June 2009, Treasury announced that, in the event that an issuer does not repurchase its warrants, Treasury would sell the warrants to third parties “as quickly as practicable” and, when possible, by public auction.

https://www.treasury.gov/initiatives/financial-stability/briefing-room/reports/Documents/TARP%20Warrant%20Disposition%20Report%20v4.pdf