Fannie Mae Preferred S (FNMAS)

[NobodyFromNowhere]

My research now has FNMA and FMCC as perfect shorts. There is no value as the plans in Washington have come to be as follows

1. New Fannie and Freddie business will be merged with FHA and run as always w/ FHFA as regulator.
2. Old Fannie and Freddie books of business will run off over time and continue as they have been. All risk and net earnings going to taxpayers.
3. The common securitization platform will distributed to each of the 10 federal home loan banks. The 10 CSPs will be capitalized and run just as FHLBs are currently.

Old shareholders get zero. It will be an easy and smooth transition.