Fannie Mae-No Politics (FNMA)

[Wise Man]

The Warrant was issued for free. Then, its value was debited from the shareholders' pockets, Additional Paid-In Capital account:
$2,304 million in Freddie Mac.
$3,518 million in Fannie Mae.
You are always clueless about FnF matters (Common Equity is the core of the capital structure, capital metrics, etc.), Bradford "the hippie":

They bought the warrants at a ridiculous price

I will rephrase the comment that you were replying to. After the UST exercises the Warrant at $0.00001 per share, the shares can be assigned to any Person: GS, MS, BLK, JPM, Community Banks, etc. (Covenant 2.1 in the Warrant prospectus)
So, it's not that Wall Street and the Community banks purchase a 79% stake in FnF at $0.00001 per share like the UST, but they become owners of FnF as if by magic, without sale/purchase.
Not only this slams the idea that the Warrant was issued for profit, but also it clearly shows that it's the wording à la Goldman Sachs, of a Housing Finance System revamp that brings in the fully private sector in the Guaranty Mortgage Securitization business but, instead of being with the objective to compete with FnF on a level playing field, it's through the assault on their ownership for free.
This is what Goldman Sachs and the FHFA had in mind in 2008, but legally, the Warrant arguably can only be a collateral (We consider it purchased at $0 cost, so that the prerequisites on purchases of securities kick in: Authorization to (iii) protect the taxpayer), because collaterals are also barred in the Charter's Fee Limitation of the United States.
So, the Warrant is a flawed security in every aspect that you can think of, yet you and many others claim that the UST will buy shares at $0.00001 and, at the same time, it resells them for a total profit of $100 billion, in a shameful attempt to negotiate with the government a better deal for the battered JPS holders and stock price manipulation in the meantime.

Everything changed first in 2010 with the Dodd-Frank law requiring the UST to submit "recommendations on ending the Conservatorships, no later than January 31, 2011" and the key, as a result, the 2011 UST-HUD Report to Congress, where the UST's recommendations became a mandate with a call for stringent capital requirements, better known as Basel framework, pending the ultimate Housing Finance System that will be chosen by the Congress.
This is why our negotiator yesterday made the case contending that, in a takeover by Wall Street, the stocks' fair value must reflect this endgame, plus the value of the Deferred Income, net, upon accounting change (income currently in limbo)
Unless there is a Taking by the UST, when the fair value is the adjusted BVPS.
Both fair values have already been published.

A fully private sector is where we were headed to (Charter revoked) and we are entitled to capture the endgame, regardless of the shenanigans in the process: illegal legislative fees, CRT operations scam, the Warrant as illegal collateral, Separate Account, etc
Otherwise we stay.

— Conservatives against Trump (@CarlosVignote) October 29, 2023