FNMA https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000310522&owner=exclude&count=40 10-Q dated 3 November 2016 for quarter ended 30 September 2016 https://www.sec.gov/Archives/edgar/data/310522/000031052216000672/0000310522-16-000672-index.htm https://www.sec.gov/Archives/edgar/data/310522/000031052216000672/fanniemaeq30930201610q.htm As of September 30, 2016, there were 1,158,082,750 shares of common stock of the registrant outstanding. ********************* FMCC https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001026214&owner=exclude&count=40 10-Q dated 1 November 2016 for quarter ended 30 September 2016 https://www.sec.gov/Archives/edgar/data/1026214/000102621416000148/0001026214-16-000148-index.htm https://www.sec.gov/Archives/edgar/data/1026214/000102621416000148/a20163q10q.htm As of October 19, 2016, there were 650,046,828 shares of the registrant’s common stock outstanding. .
Warrant terms FNMA https://www.treasury.gov/press-center/press-releases/Documents/warrantfnm3.pdf "Void after September 7, 2028" FMCC https://www.treasury.gov/press-center/press-releases/Documents/warrantfrec.pdf "Void after September 7, 2028" Both of the above documents are 10 pages long (each), and I'm guessing that the govt probably just created one document, copied it, and then changed the company name, in order to create two separate term sheets for the two separate companies. .
Pershing Square FNMA / FMCC report from Daal's journal: https://www.elitetrader.com/et/threads/global-macro-trading-journal.215992/page-633#post-4367142 .
I'm bullish and long both. Mostly likely scenario is that they settle suits with shareholders. Perhaps offering a 10% piece of the profits instead of the 0% they get now with the net worth sweep. Its still less than the 20% they were legally entitled to, but at least everyone gets to move on. In that case, the share prices still have substantial upside from here. FNMA would be worth $10, potentially more if they can unlock some value from the business or if the settlement is for more than 10%. Risks are to the upside of both, if anyone is short, just quit trading/investing because you have no business taking risk
As I mentioned in the link that m22au posted, there is a huge incentive for Trump to settle, exercise warrants and sell stock to the public. The AIG plan. He needs to fund all that fiscal spending and tax cuts, raising cash from the FNMA FMCC stakes is a good way to do that. The net worth sweep doesnt help him much, he will get $10-$20b a year from that. The AIG plan will yield him over $200b. Thats a good start to fund all the stuff he wants to do. Furthemore, they could lose the suits and be forced to give out 20% anyway. By offering 10%, they get to keep an extra 10%. Thats worth $20B to the US Treasury right there Also, Paul Ryan doesnt seem all excited about all the spending Trump wants do to, he is a fiscal hawk. By doing the AIG plan, the deficit doesnt get out of hand (at least for a while) and Ryan stays happy and compliant