Fannie Mae Preferred S (FNMAS)

[rosen62]

There are real reasons to be hopeful.

As long as the Conservatorship exists Congress cannot do anything unless somehow legislators are able to come up with legislation that won't be vetoed. A miracle to say the least.

Republicans understand this. They are also aware that they are at the mercy of the conservator. Conservatorship has been set up in a way that it has become a fortress-like institution and a real shield against Congress. For the duration of Mel Watt's tenure, Congress has -or better yet Republicans have- no power. Or they wait until they could replace Mel Watt with someone of their own.

So Republicans best bet to undo the Conservatorship and stop Mel Watt in his tracks is to nullify the 3rd amendment in a way that may lead to a recapitalization which, in turn, may lead to ending Mel Watt's dominance in housing policy. A simple regulator is not the same as a conservator.