Monday, September 8, 2014

treasury CANNOT EXERCISE THE WARRANTS on FNMA

treasury CANNOT EXERCISE THE WARRANTS

from the govt own mouth:

“Board of Governors Legal Division: “‘We understand that the Treasury lacks the legal authority to hold directly voting stock of AIG.’”

“September 17, 2008 report of Treasury’s external counsel at Wachtell: ‘Treasury legal is telling, as per doj, that they cannot hold voting shares.’”

“TARP Chief Investment Officer Jim Lambright: In ‘September when the Fed extended the credit facility, the government didn’t have an equity tool.’”

“Paulson:
‘Q. And prior to TARP’s approval, Treasury did not have the authority to purchase equity, either. Right?
A. Correct.’”

They have NO authority to ever own voting rights or common equity!!!!!!!!!!!
from their own mouths!!!
They legally are unable to purchase the warrants at any price as this would give them voting shares and would also be equity in a company. they CAN NOT ever do this as it is not in their legal ability. They can have the warrants as collateral, that is all. NOTHING ELSE

2 comments:

  1. Replies
    1. I would say they could sell the warrants, but not if the court says the loan has been repaid and then the collateral of the warrants would have to be returned to fannie.

      Delete

leave a reply: