Fannie Mae (FNMA)

[malebaboon]

Dollars1 - the teeth in the MBS that Pimco wants would come from a fully funded backstop that does not need government backing unless depleted. The 200 billion dollars of capital that the senior preferreds represent in the market, could easily provide the backstop in even the most severe downturns. If the goal is to get the taxpayer off the hook, let the taxpayer keep the money already paid back, and secure the recap with the unrealized value in the government's senior preferred stock. Everybody wins. This is what is self-evident to objective market analysts, but what ideologues continue to lie about and dismiss.

IMO

MB