For the issuance of a warrant, what only matters is their market price, not their fair value. Are you suggesting that their fair value on day one of Conservatorship was $7ps? Why? They submitted a draw request to Treasury on the first quarter because they posted negative Net Worth (bankruptcy)
I don't know the closing price on that day, but I've told you that in the 3Q 2008 earnings reports, both GSEs recorded a charge on the Additional Paid-In Capital for the issuance of the warrant at an exercise price well below their market price. That account reflects the shareholders' money ponied up above the par value of the stock. So, the damage for the issuance of the warrant was already recorded on the shareholders' pockets.
I looked at it long time ago, and I'm not going to revisit it. If I'm not mistaken, it was a charge of $0.9 or $1.15ps.
The problem with the warrant is that it's a collateral of the SPS and thus, it should have been cancelled when the SPS were redeemed in 2013/2014 under the exception B to the Restriction On Capital Distributions. That's when a direct claim surges.
It's a Direct claim by the shareholders because the damage is borne by the shareholders, not by the enterprises.
$$$$ DILUTION $$$$$
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