Fannie Mae-No Politics (FNMA)

[Rodney5]

F2Twins, your letter is encouraging government theft by supporting the exercising of the 79.9% warrants. What you are proposing is in direct violation of congressional law.

The warrants are an illegal fee. But more importantly, the warrants granted to Treasury violate the Charter Act directly, as the Charter Act statute requires that FNMA issue common shares for “appropriate” capital. The amount the Treasury will pay the companies to exercise the warrants is nowhere near appropriate capital. I’ll go so far as saying it’s stealing.

Barron Quote: “ Nothing in HERA removes or supercedes the directors duties under the safety and soundness act. Federal law requires FNMA (whether by BOD or FHFA-C) to issue shares of common stock for "appropriate capital". Full stop.” End of Quote

0.00001 purchase price per share

Illegal Warrants Treasury Common Shares
4,603,542,119 Fannie Mae (cost $46,035)
2,584,067,576 Freddie Mac (cost $25,840)

$71,876 non-substantive price Treasury payment for 79.9 % of the entire market value of Fannie Mae and Freddie Mac is not appropriate capital, it’s stealing from the shareholders.

7,187,609,695 total shares x 0.00001 = $71,876

Senior preferred 1,000
Page 143

Quote: “If the warrant is exercised, the stated value of the common stock issued will be reclassified as “Common stock” in our consolidated balance sheet. Because the warrant’s exercise price of $0.00001 per share is considered non-substantive (compared to the market price of our common stock), the warrant was evaluated based on its substance rather than its form.” End of Quote

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https://www.sec.gov/Archives/edgar/data/310522/000095013309000487/w72716e10vk.htm#304;;;;;;