Replies to post #578862 on Fannie Mae-No Politics (FNMA)

[ano]

Correct the $0.00001 price makes the warrant illegal, as it was not market conform, and therefore it is a taking (ones excecuted)

[Latergater]

Quick- post the SEC warrant letter to stop the bleed. Restore the faith.

[kthomp19]

When applying the excersized price of the warrants they should have used the Black Scholes Method. Instead they just simply picked a number out of thin air and applied it which totally contradicts the rules of warrant pricing.

What law says that Black-Scholes should have been used? That makes no sense, these are stocks, not options.

And what are the "rules of warrant pricing"? Why must they be followed?

Do you think the Apple BOD or any other hugely profitable company could issue warrants today at 700% less than what the stick is trading at? The answer is no.

Irrelevant. This has nothing to do with the SPSPAs in 2008. The circumstances were entirely different.

In Fannie Mae’s case they issued warrants for one one thousandth of a penny while the stock was trading in the 20 cent range. The formula they should have used was to take the preceding 10 day closing stock price average.

Should have? According to what law?