Replies to post #433113 on Fannie Mae-No Politics (FNMA)

[AncientAries]

Yeup, you are correct.

[rekcusdo]

If AiG is used as an example to state that the government will exercise the warrants, then it is apples and oranges comparison.

Or at least a Fuji apple to Granny Smith apple comparison. They are similar, but not identical.

Here in Fannie Mae there was a payback that exceeded the original loan amount and on top of it you cannot exercise the warrant to recover your money either.

This is false. There has been no payback of anything. The payments made thus far are a "dividend" structure. In NO reality is a dividend a form of payback on debt. Under the original contract, the company would have paid the dividend in perpetuity, but paid back the "loan" with other monies retained. The NWS made that impossible. So, while the situation is likely illegal and wrong,...there is no valid argument that the government has been paid back as of today in the law.

cannot exercise the warrant to recover your money either. You cannot double dip is my humble opinion

The warrants are a contractual right to the Government. And to be clear, ...if the contract entered into allows it, the Government can most definitely "double dip". Contract terms are never required to be "fair".