Fannie Mae-No Politics (FNMA)

[kthomp19]

No, it's actually correct.

Otting said that capital will be going from $6B to $150-200B. That's a recap.

There can be no recap while the NWS is in place.

Therefore, the NWS is effectively over already.

The market has had about 1 trading day to digest this information, which is plenty of time. The news has already been baked in.

Otting's words ("In the next two to four weeks you’re going to be able to see some communication that comes out of the White House and Treasury") also confirm that there will be no separate announcement of the NWS ending. It will be announced with the rest of the recap and release plan, so the shares probably won't have a chance to react to each piece of news separately.

Face it: the "commons go to $5 when the administration announces an end to the NWS" prediction didn't happen, because that announcement came yesterday.