Fannie Mae-No Politics (FNMA)

[capitalismforever]

Something you probably didn't know.

Upon recievership of the GSE's, HERA requires that a Limited Life Regulated Entity be created that will immediately succeed to the charter of the respective GSE. This new entity will function exactly like Fannie Mae with shareholders.

‘‘(2) CHARTER AND ESTABLISHMENT.— ‘‘(A) TRANSFER OF CHARTER.—
‘‘(i) FANNIE MAE.—If the Agency is appointed as receiver for the Federal National Mortgage Association, the limited-life regulated entity established under this subsection with respect to such enterprise shall, by operation of law and immediately upon its organization—
‘‘(I) succeed to the charter of the Federal National Mortgage Association, as set forth in the Federal National Mortgage Association Charter Act; and
‘‘(II) thereafter operate in accordance with, and subject to, such charter, this Act, and any other provision of law to which the Federal National Mortgage Association is subject, except as otherwise provided in this subsection."

What do you think? Will this open a window for the companies to wipe out common shareholders and start fresh, or does this prevent the likelihood of recievership because such a recievership would automatically create the exact same business model that is being accused of failing?