Fannie Mae-No Politics (FNMA)

[Steelhead9]

Before the NWS was instituted, the share price held firmly around 1-2 dollars while in Conservatorship. Let's not forget that either.

Yes, and before the NWS went into effect ... the 10% dividends in perpetuity were in effect, which if you do the math, would have starved the GSEs eventually.

They were just as corrosive to the capital reserves of the GSEs, they simply would not have gotten the job done as quickly as was desired. My assumption (granted JUST an assumption) is that if the treasury secretary declines the NWS dividend, he will also decline the "10% in perpetuity" dividend in what many have referred to as a "Call it good" deal. The divident is recharacterized as repayable,and the interest rate is reduced from 10% to whatever percentage it needs to be t "call it good".

No NWS ... no 10% in perpetuity ... that spells "capital build".

This is my understanding.