Fannie Mae-No Politics (FNMA)

[LuLeVan]

Bill Ackman said he favores the government exercising the warrants. Whether he demanded the cancellation of the SPS as a condition for this is beyond my knowledge. However, if the government exercises the warrants - and thus becomes a major shareholder - it would implicitly side with the shareholders, because the many shares the government receives through the warrant exercise will only become worth the expected $50 to $100 billion through recap/release. Therefore, the government could voluntarily cancel the SPS after (or when) the warrants are exercised.