Replies to post #813418 on Fannie Mae-No Politics (FNMA)

[Clark6290]

Based on? I assume just another fella and some wishful thinking 🤔

[Guido2]

The warrants are an illegal gift from one government agency to another. I cannot legally give Rick a warrant for $5 for all your worldly possessions. That’s what FHFA did.

All major institutions and pension funds were invested in Fannie Mae and Freddie Mac. They DON’T need the warrants executed to reinvest in them. Anyone who says otherwise is a LIAR.

[kthomp19]

If the government wants to earn as much money as possible with the warrants, the price must be as high as possible as soon as the SPS are canceled.

On the other hand, if the government wants as much money as possible period (regardless of whether it comes from the warrants), they will convert the seniors to commons instead, which means they would actually want the per-share price to be lower. This is why Ackman fears that scenario so much.