Fannie Mae-No Politics (FNMA)

[big-yank]

Wrong. This is still a regulated environment. Fannie Mae must maintain adequate capital to meet its regulated requirements or be deemed insolvent. At present, the remedy would be to draw funds from UST under the SPSPA arrangement. However, many like me fear the Congressional and press backlash against what would almost certainly be labelled another bailout that could trigger a fatal "knee jerk" reform measure imposed by Congress.