BTW, Obi, if you are still here, do you know if there is any way the govt could move to rship, wipe out all common but somehow preserve the warrants for exercising post-rship? Thanks
do you know if there is any way the govt could move to rship?
Warrant disposition is determined in part by the different possible actions of the FHFA Director, which cannot be known without actual circumstances and actions that are taken. For example, if the GSEs' assets are liquidated and distributed and the GSEs as companies are dissolved, all shareholding will end including the common shareholders. There can be no exercise of the two warrants when the common stock is no longer extant. If there is a reorganization rather than a dissolution of the GSEs in receivership, shareholders, hypothetically, could survive and in that circumstance, the warrants could be exercised.