Fannie Mae (FNMA)

[kthomp19]

If I recall the timer on liquidation is 60 days of negative net worth. But is that 60 days from the end of the last quarter when the books were logged, or from the release of the last report - or from some daily accounting given to Treasury?

Tim Howard answered that in the link I posted. It's 60 days from the earnings release on February 14. The March 31 date is not set in stone but it makes sense because then the draw money will be put on the books in Q1.

My guess is treasury is looking at daily balances for f&f, kind of hoping the draw won't be needed if current quarter's cash flow is good enough. From what I hear freddie won't need a draw, but fannie probably will.

Also answered in Tim Howard's post. Both Fannie and Freddie will need draws because they both posted Q4 2017 losses more than big enough to wipe out the capital buffer.

The $3 price from 2017 didn't take into account their $600M net worth because that was scheduled to be taken away. That price was mostly based on the crazy belief that Trump's administration would do something about f&f. That belief is long gone, so I think they will only trade on hope that treasury or fhfa does something, and the new $3B net worth when it comes back in 8 months.

I meant that the $6B combined buffer is so close to zero compared to a full recap that I don't think the stock price will react to it. Shareholders still have no access or rights to the buffer money.