Fannie Mae (FNMA)

[brandemarcus]

I still think 18.75 billion per year is the number not 25 billion.
Your proposed reforms do not take place right away and may not be politically feasible anyway. The Gse's have to manage for today, so the hedging is a necessary reality. Portfolio wind -down would solve this eventually.
As to the accounting for those hedges- I think it should be smoothed just like Freddie wanted to do it in 2002-2004. Then there would not be all that noise in quarter to quarter earnings.