Fannie Mae-No Politics (FNMA)

[kthomp19]

The Mulvaney bill proposed a few years ago provides for recapitalization solely through retained earnings.

That requires Congress passing a bill. Therefore I put a probability of zero on it, or at least small enough to disregard completely. This administration has a plan, and if Congress tries to pass a bill that thwarts it, it will get vetoed. There isn't even close to enough agreement in Congress to override such a veto.

It also requires a government line of credit in the meantime, which is exactly the type of risk to taxpayers that Mnuchin wants to remove. The only way to minimize taxpayer risk is for FnF to have capital, and for them to build it as quickly as possible.

A publication of the secret 12,000 documents holds the potential for a victory for us shareholders across the board.

This doesn't do anything to directly accomplish a recap without dilution.

I also don't see any reason to believe that these documents will ever be released. And even if they are, it won't happen until after this whole thing is resolved.

There are dreamers and there are skeptics. But it doesn't make statements more realistic just because it tries to destroy those of the others.

Doesn't make them less realistic either.