Fannie Mae-No Politics (FNMA)

[kthomp19]

Warrants expire in 2027 if no action is taken. If they are exercised now, they are worth less than 5 B (based on current stock price around $1).

Warrant expiration is in September 2028, 20 years after issuance.

Presumably, the purpose of Treasury exercising the warrants would be to "enhance taxpayer value", as they have said before. That means that while the 7.2B warrant shares would be worth around $7.2B right now (though quite a bit less in actual realized value if Treasury were to dump all the shares on the market at once), it would make little sense for Treasury to immediately sell those shares when the warrant exercise would likely be in conjunction with recap and release, making the commons somewhat more valuable.

Conversion of Sr Pref into Commons is not available per existing terms.

Not unilaterally by Treasury. It is possible with the agreement of FHFA. The existing terms are no bar to a conversion at all.

The same is true for the juniors.

If they are converted at any price other than the current market price, it is a takings.

Why do you say this? And what quantifiable damages would the putative plaintiffs have suffered?