Replies to post #535673 on Fannie Mae-No Politics (FNMA)

[YanksGhost]

Well, sure, that is one view. But better would be for GOV to simply sell them back to the GSEs at a nominal gain and move on.

That simple and well-precedented move would facilitate RRR and benefit ALL stakeholders.

[bcde]

"Nobody should have a reason to hate the warrants."

100% False. Why would any shareholder want some one to get 80% of the companies for lying and robbing. Can you give any common sense reason to not to hate the SPSPA warrants?

They are the primary reason that Treasury has to allow recap and release rather than just never approving release at all.

100% false. UST has no say in this matter. It is White House Directives to end conservatorship. FHFA has the legal responsibility to end conservatorship when FnF are rehabilitated.

The idea that the commons would be worth 5 times as much if the warrants ceased to exist is incredibly naive.

100% false. What needs to done with warrants is totally different matter. It is only naive who are trying to connect these different things.

Removing Treasury's incentive to prop up the share price (and push for lower capital requirements) is far more damaging than 5x dilution.

100% false. This naive UST incentive is a fiction made up by few JPS holders and Bank lobbyists. UST is part of administration and UST has to follow the public policy of White house on this matter.