Fannie Mae (FNMA)

[malebaboon]

Agree with USMCvet - though I am more hopeful than him of (at least) a fair and thorough hearing in Sweeney's court; the very probable outcome of the GSE mess is that, even without the courts, they are eventually released by FHFA due to market forces and the recognition that they can't justifiably or realistically stay in conservatorship forever. Republicans are very unhappy that the GSEs are 'opening the spigots' again, and this time with the US taxpayer entirely on the hook, as the GSEs have no capital at all to sustain even a minimal downturn in housing. Congress will remain stalemated for years on housing legislation, for all the obvious reasons.

A good solution would be for the government/treasury to exercise its warrants and use these funds to capitalize the GSEs for release. Does that make too much sense?

In any event, it is evident that the GSEs are going full steam ahead into a confident future, and one has to wonder where that confidence is coming from? There must be a plan to recapitalize sometime in the coming months...

IMHO

MB