Fannie Mae-No Politics (FNMA)

[bradford86]

Oh. You think exercising the warrants is illegal.

They were issued in 2008.

My view is that it would be illegal not to exercise them. The government has to monetize its equity position to its fullest potential in order to protect taxpayers.

It is not the warrants that get the common shareholders as much as it is the spspa that exceeds the market value of the common equity.

The companies are underwater in an equity restructuring and commons have no dilution protection. It is like spilling a glass of milk into the sea. No way to get that milk back. Whereas jps are like a lifevest. They just float on top and are easy to get back.

Study up on your dilution mechanics young man!