Fannie Mae-No Politics (FNMA)

[big-yank]

The simplest deal for a settlement would be a clean slate agreement that all deals and debts under conservatorship are cancelled and things go back to the way they were in August, 2008. Senior preferred shares are cancelled. Warrants are cancelled. SPD are terminated. The sweep is ended.

So what does the government get for its offset to givebacks? An end to the $400 B backstop. An end to settlement cost risks, at least for the majority of cases pending in courts. An end to Documentgate releases. An end to HUGE DOJ defense costs. And, possibly, a deal to have GSEs write off DTAs and resume paying Federal taxes, albeit at likely lower corporate rates under DT Tax policy revisions.

This is a businesslike sort of settlement. Trump is a businesslike guy.

JMHO.