They are so illegal that they extended the use date on them. So irrelevant. And the Gov is/has been so fair in all this for all these yrs. And warrants are a form of capitol raise say if all preferreds get paid with interest.
I read it somewhere a few years ago. The free warrants are just-in-case measure to ensure government is in control if the GSEs go bankrupt. Now that the GSEs have fully repaid their bailouts, I don't see any reason for UST to exercise the warrants. Maybe UST can sell the warrants back to the GSEs, as an alternative. UST did the same to AIG.