Fannie Mae-No Politics (FNMA)

[bmp152]

It's all a bit murky, but here is what I could find:

Here is the original warrant to purchase common stock issued by Lockhart (FHFA Conservator at the time) to the US Treasury.

http://www.treasury.gov/press-center/press-releases/Documents/warrantfnm3.pdf

I believe it is only a warrant to purchase. It states that Treasury has the right to purchase up to 79.9% of the common stock at a nominal price of $0.00001 per share. They can be purchased until Sep 7, 2028.

Ted Olson, the lawyer for Perry Capital, argues this:

"The Sweep Amendment directly undermines both the rules of conservatorship and Treasury's
statutory requirement for providing financial assistance to the companies as explicitly stated in
HERA. First, Treasury acted beyond its statutory authority because its authorization to purchase
securities of Fannie and Freddie and to set the "terms and conditions" of those purchases
expired on December 31, 2009. Because the Third Amendment fundamentally changes the
nature of the senior preferred stock to allow Treasury to recover all the net income of Fannie
and Freddie as long as they remain in operation, the agreement impermissibly altered the terms
and conditions of the securities and otherwise constituted a constructive purchase of a new
security in violation of this sunset provision."

http://images.politico.com/global/2013/07/07/treasury_suit_announcement.pdf