Replies to post #817079 on Fannie Mae-No Politics (FNMA)

[Fully Diluted]

Absolutely right, stockprofitter,

Outside of conservatorship the common shareholders regain their rights and can decide wether there is a conversion or not.

There are people who think that treasury would be in the driver's seat with 79.9% of all common shares after the warrants are redeemed. But I think that's out of the question. Because according to HERA, the Secretary of the Treasury has not been allowed to put money into Fannie and Freddie for securities or stock since 2009. And since redeeming the warrants would cost USD 0.0001 per share, he is not allowed to do so. Tough luck!
The only remaining option to turn the warrants into cash is to have them paid out according to the formula shown in the warrant certificate under 2.2:
https://www.fhfa.gov/sites/default/files/2023-03/fannie-mae-warrant.pdf

This should also clarify the question of whether the sovereign wealth fund envisioned by Trump will include shares of Fannie and Freddie from the warrants. It will not!