Fannie Mae-No Politics (FNMA)

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Since everyone has a plan, here is mine:

1. Undo Net worth sweep and consider the senior preferred shares repaid. This is fair, and in the best interest of the government as it must happen in order to create a private capital buffer. Will kill the majority if not all of the outstanding litigation.

2. Provide an expressed government guarantee in the amount of $113.9 billion, the remaining additional treasury line of credit obligation under the SPSPA, and apply it proportionately to the MBS issued during conservatorship. This will prevent lawsuits from purchasers of MBS during conservatorship that relied on the existence of the government line of credit when they purchased the MBS.

3. Allow expressed government guarantee to be accounted for as an asset by Fannie Mae. This is in line with GAAP.

4. Since current assets = current liabilities, the $113.9 Billion asset will allow for the sale of $113 Billion in assets to raise core capital.

5. Exercise warrants, in consideration of guarantee/modified SPSPA

6. Release, re-list, sell government stock, Recoup $113 Billion +

7. Regulate, gradually increase capital requirements to a level adequate to ensure government guarantee is never required.