Replies to post #384412 on Fannie Mae-No Politics (FNMA)

[jarenawer]

Government did as they went along, judge Sweeney said that. Warrants were a tool just in case they could not recover the bailout. Later, in 2012 they changed the rules unilaterally to sweep all the divvies. Now, the last efforts are arguing warrants are a contract and should be made effective though 80% ownership. Wrong, it was a conservator, not ownership.

As I said, we are winning and team Trump/Mnuchin will make us whole.

[jog49]

"It was my understanding that warrants were set in place to reduce the ability of shareholders to profit from any of the activities of the conservator that ended up making them profitable until the treasury got it's money back. This is why I thought the warrants were insurance to treasury that they could minimize their losses if the GSEs liquidated and were unable to be saved."

That fits right in the mold marked COLLATERAL perfectly.