Free warrants are just-in-case arrangement, shall the GSEs bankrupt. It is not intend to give away the companies for free. I read it somewhere, probably from the Q&A in their announcement of the PSPA contract.
This isn't about thinking. If you don't challenge the Warrant, in reality you are using it to negotiate with the government a better deal for the hedge funds JPS holders that pay the bills to all these corrupt and unprofessional attorneys. Then, if it's exercised, these attorneys will say: "But I thought....", like a kid.
The law bars exercising the warrant, as it's a security issued for free to evade the prerequisite on purchases of collateral ("to protect the taxpayer") in the law, as explained yesterday in a post slamming your co-boss Pagliara (also Ackman) So, collateral it is, purchased at $0 cost. Something that the attorney Bryndon Fisher has denied in his posts on this message board. An attorney obviously working for either a hedge fund manager or, the most probable, for the DOJ. Both are the same in this scandal, as counterparties colluding for the Govt theft story that has decimated the share prices, instead of the Separate Account plan according to the law.
Fisher behaved awkwardly in the CFC, insisting on going to the Appellate Court himself accompanying the lead plaintiff of the 11-related cases, Fairholme, sent by judge Sweeney (former DOJ employee and appointed chief judge by Trump), until she finally allowed him to go, but filing only Amicus briefs. It seems that someone didn't want him to lose the spotlight. Besides insisting on paying a 10% dividend to Treasury and disregard of the laws and basic finance, that bar any dividend payment and today's gifted SPS when FnF are undercapitalized and Accumulated Deficit in the Retained Earnings accounts (adjusted $-216B. An account that you don't know what represents: to absorb future unexpected losses, it needs a positive balance. Core Capital and CET1 for the Capital ratio)
Anyway, this security is barred in the Charter's Fee Limitation, just like the initial $1B SPS issued for free, either as a charge or as a higher rate on the SPS, as there is a special borrowing right from UST since the Charter's inception.
THIRD. It's barred in the FHFA-C's Rehab power as well ("put FnF in a sound and solvent condition"), as both the Warrant and the initial gifted SPS reduced the core capital in the same amount.
And don't take the role of Guido of praising Bryndon Fisher and Pagliara. Guido needs more checks from the hedge funds than you. Stick to praising your other boss, Ackman.
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