About the Prefs "It doesn't sound illegal." The ROL-Guy is not always right as seen by several occasions and when compared To The Opinion of Judge Sweeney, Etc. and it means not because No Court Claim as yet that it should be legal, where usually Claims Made Just In-Time.
Sure, issuing Warrants is not illegal, contrary it's therefore often applied to grant Financial Commitments as Here at F+F, but some of the content is illegal and if exercised under the formulated conditions and We need to be aware of that.
For example usually the Exercise Price is the Av. Price of last 3-6 Months or so and at F+F we have the following :
-- At Friday Sept. 5, 2008 FNMA was $ 7
-- At Saturday Sept. 6, 2008 the entry into Gov's Conservatorship
-- At Sunday Sept.7, 2008 was SPS & CS Warrants Issued by FHFA with UST
-- At Monday Sept. 8, 2008 FNMA was about 20 Cents
-- But in all of this The Gov made the Exercise Price of Only $ 0.00001 per FNMA or SPS and that surely is illegal because for only $ 46 K get 79.9% Companies Ownership and That of Trillion $ Companies as One of The World Biggest and Most Profitable Companies, to be aware !
Judge Sweeney also therefore call it Mob-Like !!!
Until Today Seems No Sheriff In Town, No FBI and/or National Guards.