Fannie Mae (FNMA)

[malebaboon]

Zargis - I agree with you, but the political reality at this point (IMO) is that some negotiation is required, if there is to be a legislative solution. The government sank their teeth into the flesh of the GSEs and they will tear off a substantial hunk for their own digestion. I am just looking for a pathway out: a legislative solution that is somewhat satisfactory to all. I think something like what I describe would be palatable to Hensarling at this point, and capable of passage by both the Senate and Obama.

FnF survive as private companies, not as GSEs; taxpayer off the hook; shareholders survive and thrive; housing market remains stable and robust with room for increasing private capital participation within guidelines of the CSP.

A legal solution, out of Sweeney's court, would certainly change the entire conversation. But that is also going to the Supreme Court, no matter which side wins this round, IMO. Could be seven years. I would rather a fair legislative solution be enacted.

MB