Replies to post #817085 on Fannie Mae-No Politics (FNMA)

[Fully Diluted]

Unfortunately, I have to correct my statement. I had remembered the meaning of the formula differently. But after looking at it again, it is clear that treasury can receive shares from the warrants after all. The formula only serves to allow the Secretary of the Treasury to exercise the warrants without any further issuance of capital. Fewer shares are just issued to compensate for the cost of USD 0.0001 per share exercised. Therefore, these statements are false:

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!

We also saw in the last letter agreement between FHFA and treasury that they can simply change the expiration date of the warrants. So they could also change all the other provisions in the warrant certificate.

Folks, it's finally time to get out of conservatorship so that FHFA can no longer make any decisions on our behalf that are not in our best interest at all. Don't fret, Fully... 😡🤬🙃