Fannie Mae Preferred S (FNMAS)

[rosen62]

I wouldn't get excited for all the "independence" that Fannie and Freddie have been showing in the last few quarters (CEOs stating they will compete for market share, conference calls, etc.). Some may mistakenly think that this is a sign that they are alive as private, corporate entities.

In light of what is going on in the lawsuits it is also possible that the government has requested them "to act as if they were" just to imprint in the courts' mind (Sweeney) the impression that the government is not directing the companies. Remember, number one for the government now is to obtain a dismissal based on the fact that Judge Sweeney's court has no jurisdiction. Which requires that FF are not the government.

Until the government releases its hold on them or is forced to there is no reason to get excited.