1. There are a few problems with your theory of 2018. One of the reason's the third supposedly "benefits" shareholders is the treasury agrees to supply capital if their is a net worth deficit. The gse's are allowed to operate with 0 capital, that's what the government keeps saying. Whether the gse's retain a small amount of capital or zero after 2018 has no consequence until there is new legislation to replace them.
2. Mr Paul Ryan just hates the name Fannie and Freddie. He loves or the realtors in his district that give him money love what the twins do.
Let's see Corker-Warner, Path act, Johnson-Crapo they never get anywhere.
Liberals in the senate hate the new legislation because any replacement does not fund the social goals they burden the Gse's with. The conservatives hate the big government aspect of the Senate Bills so you are not going to see a new expanded Ginnie Mae. Okay if the election is a landslide for one party or the other -maybe some new structure could pass but I think that is looking less likely with each day . They will get rid of the gse's the same day they design the post card income tax and balance the budget by cutting all that obvious waste , fraud etc.
3. Okay perhaps they just kick all shareholders to the curb if the courts let them. Establish a cooperative like the old Freddie owned by the banks.
Most important , we change the name for political purposes so everybody can say I killed them but leave a similar structure in place. You are going have to have a cooperative because nobody would be stupid enough to own new stock in such enterprises if Lambreth still stands. That's the bottom line! I thought and still think the adults in the room will figure that out eventually ,but I don't know how long "eventually" is!
