Fannie Mae-No Politics (FNMA)

[The Man With No Name]

Converting the seniors into warrants for even more common shares than the existing warrants allow for is an interesting way to handle Treasury monetizing its FnF equity stake. Treasury could exercise the warrants piecemeal in the future and sell them off a bit at a time. They could even sell off pieces of the warrants themselves and avoid ever owning a single common share, which would pre-emptively defeat any challenge regarding majority ownership, voting rights, or balance sheet consolidation.

Yep.

They could convert seniors into warrants; seniors into common shares; assign warrants, current and future; receive warrants with valuation triggers, date triggers....

They could do all kinds of things folks here never thought of. And what the seniors could do, the juniors could be offered the same.