Fannie Mae-No Politics (FNMA)

[jacklanvo99]

Fannie, Freddie and an Outbreak of Amnesia
The growing ‘recap and release’ movement is a bad idea that could lead to another financial disaster.
http://www.wsj.com/articles/fannie-freddie-and-an-outbreak-of-amnesia-1464131687

The only way Fannie and Freddie’s investors make money is to maintain the existing crony business model. But not even that gets the GSEs out of the woods if they are required to hold adequate capital. As the Journal’s John Carney explained in an April 4 column, at current rates of profit, Fannie and Freddie wouldn’t have enough capital to depart conservatorship for decades.