Fannie Mae-No Politics (FNMA)

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The comment from peter wallison that timhoward is referring to:

Peter Wallison, co-director of the American Enterprise Institute’s program on financial policy and a frequent critic of the GSEs, said the new arrangement will help ensure the companies eventually are wound down.

‘Good Idea’

“The most significant issue here is whether Fannie and Freddie will come back to life because their profits will enable them to re-capitalize themselves and then it will look as though it is feasible for them to return as private companies backed by the government,” Wallison said in a telephone interview. “What the Treasury Department seems to be doing here, and I think it’s a really good idea, is to deprive them of all their capital so that doesn’t happen.”