Fannie Mae-No Politics (FNMA)

[rantomac]

As compensation for its commitment to inject capital into the GSEs, the Treasury has also received warrants that give it the right (but not the obligation) to buy common stock in each of the GSEs—equal to 79.9 percent of total outstanding shares—for a nominal amount. Those warrants expire on September 7, 2028.

so lets assume the Gov exercises the warrants...approx. 7,000,000,000 shares = $4,620,000,000 ( if they can sell for .66 )
Let's also assume a reverse split ( makes little sense, imo ) 1-20 reverse would leave Gov 350,000,000 shares, but share price would increase to $13.20. $13,20 x 350,000,000= $4,620,000,000
Only way for Gov to maximize their warrants is to exercise here and let markets take it higher. Outstanding shares go from 1.8 billion to approx 9 billion. Not unmanageable. In short time, if the NWS is ended the stock could easily trade above $20. At $20 the Gov stake is worth $140,000,000,000! And we all know they are worth much more!