Bryndon Fisher is a credible plaintiff. About a year ago, I offered to join him in any action he might contemplate and to recruit additional plaintiffs. He responded that at the first move by Treasury to exercise the warrants, he would ask his legal staff to amend the compliant to include the warrants. Exercise of the warrants or the sale to third parties will definitely be challenged. Although I don't believe Fannie and Freddie should have to buy their own warrants back, that would be a minor (in terms of outflow) compromise. At current prices, it would cost Fannie roughly $8 billion and Freddie just over $5 billion.
100% of these corporations is well worth over $400 billion. Paying $13 billion to get back $320 billion is a huge deal and will help Treasury save face. TBTF banks and their stooges in Congress and the press won't be able to complain as TBTF banks were given the same deal.
For those who would like to read Bryndon Fisher's actual comments, I suggest they visit Google Groups. He sometimes comments there. And very rarely on Seeking Alpha.
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