According to the plan, the U.S. Treasury would retain the warrants for 79.9% of common stock, while junior preferred shares would either remain outstanding or be converted to common stock on a negotiated basis.
Whalen emphasizes that bringing Fannie Mae and Freddie Mac out of conservatorship without legislation is a complex process that could take years, and it requires immediate action from the new FHFA director to prepare for changes in the market.