Fannie Mae-No Politics (FNMA)

[LuLeVan]

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.

If the government transfers (or "assigns") the shares received from the exercise of the warrants for free to the banks mentioned above, it would make no money. Why would the government give up on up to $100 billion? Therefore, it is much more likely that the government will SELL the received shares to those banks - at a small discount to give them an incentive to buy.

For the same reason, the SPS will not be written off for free. Calabria even wrote in his book that the government believes a cancellation of the SPS without compensation would be "illegal".