Fannie Mae (FNMA)

[contrarian bull]

FHFA should just tell Treasury that taxes dont apply to the GSEs while in conservatorship. Problem solved. Dont need DTAs if taxes arent owed.

Someone please explain why this is wrong.

Well... if taxes are not ever owed, the DTA's would be worth ZERO which makes the problem worse!

If taxes were not owed while in conservatorship, but would be owed later, then those DTA's stay on the books, but still get reduced based on the current tax rate since they get marked to current market value each quarter.

So that would not help.