Fannie Mae-No Politics (FNMA)

[kthomp19]

A warrant is the right to “Purchase” a share at a set price with-in a set period of time. Treasury was authorized to “Purchase” shares and securities for a couple years at the beginning of the great recession. That authorization has expired. Exercising a warrant is a “Purchase” regardless if it is .0001c or $1,00.

This entire argument is wrong.

You are referring to 12 USC 1719(g)(4):

(4) Termination of authority

The authority under this subsection (g), with the exception of paragraphs (2) and (3) of this subsection, shall expire December 31, 2009.

But you need to read paragraphs (2) and (3) because those give the exceptions. The one that defeats your argument is (2) (emphasis added):

(2) Rights; sale of obligations and securities
(A) Exercise of rights

The Secretary of the Treasury may, at any time, exercise any rights received in connection with such purchases.

(B) Sale of obligation and securities

The Secretary of the Treasury may, at any time, subject to the terms of the security or otherwise upon terms and conditions and at prices determined by the Secretary, sell any obligation or security acquired by the Secretary under this subsection.

(C) Deficit reductionThe Secretary of the Treasury shall deposit in the General Fund of the Treasury any amounts received by the Secretary from the sale of any obligation acquired by the Secretary under this subsection, where such amounts shall be—
(i) dedicated for the sole purpose of deficit reduction; and
(ii) prohibited from use as an offset for other spending increases or revenue reductions.

(D) Application of sunset to purchased obligations or securities

The authority of the Secretary of the Treasury to hold, exercise any rights received in connection with, or sell, any obligations or securities purchased is not subject to the provisions of paragraph (4).

Your argument has been tried many times before, but it fails when one carefully reads the law. No amount of pom-poms and cheerleading will change that fact.

Treasury cannot purchase stocks in private companies without the approval of congress.

Do you have a citation for this?