Fannie Mae-No Politics (FNMA)

[kthomp19]

This deserves its own post. In regard to the warrants you claimed:

The amount of crookedness =
($95 billion x 79.9%) - $72,600.

Where does $95B come from? Fannie's Q2 2008 10-Q form says its net worth as of June 30 2008 was $41.226B (page 96 of the pdf), and Freddie's Q2 2008 10-Q form says $12.948B (page 124 of the pdf).

Page 41 of Washington Federal's complaint shows that Fannie had $41.390B of net worth as of June 30 2008, and Freddie had $13.079B. These are close enough, I suppose.

When you subtract out Fannie's $21.725B and Freddie's $14.109B of junior preferred shares, Treasury's Fannie warrants had an equity value of ($41.226B - $21.725B) * 79.9% - $42,781 = $15.581B, and its Freddie warrants' equity value was zero because Freddie's net worth was less than the face value of the juniors.

That means, even according to your own logic, Treasury's Freddie warrants were worthless the moment they were issued! Giving Treasury something with zero value can hardly be called "crooked" or "swindle" or "fraud"!