Fannie Mae-No Politics (FNMA)

[kthomp19]

Next, I have seen these before, and many people who have posted over the years in various forums have more or less paraphrased, mixed and matched, sometimes garbled, and most often botched the true value you find in these minutes first-hand. Many people in various forums are adamant that the warrants will, or should never be executed, and I suspect these minutes are the reason why; however, I would be cautious relying on these minutes for that end.

Well said.

There is a vast chasm between "Treasury didn't have any intention of exercising the warrants in 2008" and "Treasury won't exercise the warrants in the future". 15+ years is a long time.

While, if ever taken to court after execution, I do believe these minutes would cast serious doubt, if not destroy any validity of execution, these minutes are not a legal agreement between any two parties. It would take an actual court case, the minutes being allowed as evidence, and then weighed against 15 years of subsequent actions.

Since Treasury was ready to move forward with a senior-to-common conversion in late 2020, it is clear that they don't fear any lawsuits over it. They would fear lawsuits over warrant exercise even less.