Replies to post #498538 on Fannie Mae-No Politics (FNMA)

[camaro4me]

Gov't won't exercise the warrants but they do exist.

FnF could purchase those warrants and:

1) exercise them on the open market raising the $150-$200 Billion Otting said was needed over the next 6-18 months

2) give some warrants to common shareholders for loyalty reward to FnF

"2. Fnf buy back warrants at reasonable price. "

No, No, No, No, No, No ……..for so many reasons. You know they extorted these warrants at a $0.00001/share conversion price which was the mother of all highway robberies. $44,000 for 4/5 of Fannie and Freddie? I think NOT! The warrants were collateral and have been fully satisfied.

[kthomp19]

The warrants were collateral and have been fully satisfied.

I showed reasoning here as to why the warrants are not collateral. Short version: the only way the warrants are worth anything is if Treasury has gotten all of its money back anyway. If Treasury was ever in danger of not getting the money back, the warrants would be near worthless.

Treasury's own statement in that report says that the warrants provide "enhanced value to the taxpayers". Nothing at all about collateral, either express or implied.

The "warrants are collateral" argument is DEAD WRONG. At least until someone actually comes up with some real proof. Do you have any?

[bcde]

No, No, No, No, No, No ……..for so many reasons. You know they extorted these warrants at a $0.00001/share conversion price which was the mother of all highway robberies. $44,000 for 4/5 of Fannie and Freddie? I think NOT! The warrants were collateral and have been fully satisfied.

Jog49,
I agree. It is next alternative option.