Fannie Mae-No Politics (FNMA)

[Wise Man]

Besides, the $NYCB "rescue deal" has Pagliara's stamp on it.
It contemplates the issuance of Warrants to the existing shareholder, which is similar to a Rights Issue, as both give the right to purchase common shares at a determined price. The difference is that a Rights Issue allows the shareholders to maintain the current percentage of ownership and, secondly, the issuable shares have Voting Right, whereas the Mnuchin's plan for $NYCB are non-voting common shares that will trade at a different price (Class B shares).
Also, it's a 7-year warrant, whereas in a Rights Issue, the company raises Capital in a matter of weeks (each common stock has one right to buy X shares. These rights would trade on the Stock Market for a few weeks. If you don't want to participate in the Rights Issue, you sell your Preferential Subscription Rights on the market or the company sells it for you on the last day).
They can argue that their Beneficial Ownership won't change much with the Warrant, because under SEC rules, it doesn't matter the Voting Right for the Beneficial Ownership of FnF, as I commented on Saturday. It doesn't mean that you have to strip it out.

Tim Pagliara set up a phony Association of Shareholders "Investors Unite" to trick them into a similar plan in Fanniegate, proposing to throw in some Warrants to the shareholders.
Do you still think that the consortium of investors led by Mnuchin isn't the same "group" lying in wait for the assault on the ownership of FnF?