Replies to post #492087 on Fannie Mae-No Politics (FNMA)

[GVInvestments]

I agree. The government has no reason or legal right to exercise the warrants which means that our shares have very hi value.

[kthomp19]

I can't find it now, and with the narrative they currently have, I'm sure they removed it.

...

I don't believe that FAQ you shared for one second; it's another manipulation piece just like these last 10 years have been.

So you're basing your argument on something that isn't there, and ignoring contradictory evidence that actually is there.

You'll have to forgive me for maintaining my skepticism.

And on that basis, how can you be surprised that there are people out there who believe that the was never a stated reason for the warrants' existence? Other than as another way for Treasury to profit, that is.



Be very careful about using the supposed illegality (or unenforceability, or whatever) of the warrants as a basis for investing. I showed in another post that if the warrants are sold for a fixed amount of money, Treasury loses its incentive to keep the share price up. The same goes if the warrants are cancelled. At that point, having FHFA direct the companies to recap the companies at $1 per share (or even less!) benefits the new buyers (who need to be enticed to actually recap the companies) and hurts only current common shareholders, who have no voice in the recap process.

Treasury exercising the warrants is a very good thing for current common shareholders, at least compared to the alternative.

[Brooge warrants cancelled]

i'd love to see that