Fannie Mae-No Politics (FNMA)

[Popeye9]

So what will happen in the mean time when the companies have no capital buffer against losses? How will the market react to mbs securities issued by companies with zero equity?

How long would it take for them to raise the guarantee fund to cover potential losses? Who would put money in that fund?

They are trying to mimic the FDIC, but the banks are still private companies. It's the customers of the banks that are insured under fdic for only a certain amount.