Fannie Mae-No Politics (FNMA)

[Unhombrealado]

He probably wants to strong arm housing reform. My worry is that he gets the part of tax reform that would cause FnF to record book losses (tax deferred assets) passed, then FnF need a draw from Treasury, and he uses it as an excuse to say they're broken and, again, strong arm reform. Similar to the implementation of the NWS.

Or it could be that him being the Treasury wants to milk the GSE's for all that he can while he can (Until Jan 18); after all, they spend a lot of money. I think Mel will pressure him enough to allow the GSE's to keep some capital, but to me that wouldn't be a favorable (nor unfavorable) indication. That capital would only be for short term losses.

BTW, the Moelis plan has already shown that FnF can raise tremendous amounts of capital in a few years if needed.

unHombreAlado