Fannie Mae-No Politics (FNMA)

[big-yank]

The USA doesn't need TBTF banks or GSEs. That's where the bailout risk reposes and when private insurance becomes unattainable to replace government backstops, implied or otherwise. Even Fairholme in its 2014 presentation on privatization highlighted this reality.

Banks need to be broken up. The veil of regulation needs to be grossly simplified and made fair for hometown banks to be able to compete on a level playing field. The GSEs can surely play a key role in tomorrow's housing market; they can be released and to an extent recapitalized in a different, smaller footprint that permits other players to compete in the MBS arena. The GSEs should just never be allowed to return to being the only game in town or return to The Wild West era of risk, risk, risk.

This is why REFORM must be part of any RELEASE considered.

JMHO.